19th April 2019
Bonsucro is delighted to announce that it is investing in the development of an online credit trading platform that will make it easier to buy and sell Bonsucro credits, increasing the support of sustainably-produced sugarcane.
Major global companies use Bonsucro credit trades to support the production of sustainable sugarcane and advance their sustainable sourcing goals – without physically buying sugar. Credits are a way to enable flow of certified production in the context of regulated markets in complex supply chains.
By purchasing Bonsucro credits (one credit is equivalent to one tonne of sugar or ethanol), they also pay a small fee to Bonsucro ($1.30/per credit), a portion of which is invested directly in on-the-ground initiatives to help farms and mills adopt more sustainable practices.
Credits are a critical component of Bonsucro’s strategy as they reward certified mills and farms that have been through a change process, while generating resources for Bonsucro to invest in improvement and support those that are committed to change. They then support buyers to achieve their sustainable procurement targets and act as a catalyst for sustainable sugarcane production.
At the moment, these trades are carried out through negotiations directly between the seller (the mill) and the buyer, and paper-based administration of trades.
Bonsucro’s new online credit trading platform is being created with the intended outcomes of:
- Increasing market uptake
- Supporting trading liquidity
- Increasing transparency
- Easing administrative burdens
- Increased liquidity and benefits for producers
- Providing all members equal access to credit trading opportunities
- Make it easier for buyers to find sellers and facilitate transactions
The new platform will have four kinds of Bonsucro Credits: Cane Credits, Ethanol Credits, Molasses Credits, and Sugar Credits. Notably, the introduction of Cane Credits will allow Bonsucro certified farmers that hold their own certificates to sell their credits to buyers. Sellers of Bonsucro Credits must be producers, hold a valid certificate, only sell what they produce physically, and be Bonsucro members. Buyers must also be Bonsucro members but do not need to be certified.
Bonsucro plans to launch the platform in Q4 of 2019. Stay tuned for news and dates of the official launch. Please find more information on the credit trading platform from the presentation at Bonsucro Global Week here in case you missed it.