Renewable energy certificate
Certificates evidencing renewable generation.
What this instrument is
Read off the asset template the product uses to structure one of these, not written separately for the website.
| Fungibility | semi fungible |
|---|---|
| Income | Produces no income; the cashflows are subscription in and realisation out. |
| Maturity | Open-ended, with no scheduled end. |
| Physical custody | Not required; the claim is documentary. |
| Proof of reserve | Required on a recurring basis, because the token claims to represent a specific custodied thing. |
| Independent valuation | Not required; a market or contractual price is available. |
Token model
Derived from what the instrument is — whether it is fungible, whether it is fractionalised, whether transfers depend on the recipient, whether it accrues rather than pays, and whether units come in batches.
ERC-1155. Units within a batch are interchangeable but batches are not — vintage, project or tranche must remain distinguishable. One contract carries many token ids.
Alternatives considered
| Standard | When it is the better choice |
|---|---|
| ERC-3643 | If eligibility must be enforced on every transfer. |
| ERC-721 | If each unit is genuinely unique rather than batched. |
What must exist before it can be offered
Readiness is derived from what has actually been recorded against the asset. These are the requirements this class carries.
Parties
- Asset owner — required.
- Issuer — required.
- Legal counsel — required.
- Auditor — required.
- Oracle provider — required.
- Custodian — recommended.
- Administrator — recommended.
Documents
- Ownership evidence — required and must be current.
- Legal opinion — required and must be current.
- Offering memorandum — required and must be current.
- Subscription agreement — required and must be current.
- Investor disclosures — required and must be current.
- Regulatory filings — required and must be current.
- Audit — required and must be current.
- Proof-of-reserve report — recommended.
- Servicing report — recommended.
Legal structures commonly used
Presented as options for counsel to choose between, never applied automatically: Certificate, Custodial entitlement, Direct ownership.
What is distinctive about environmental assets
The shape of the claim
The asset is a registry entry certifying an environmental outcome. Its integrity rests entirely on the registry and the methodology behind the credit.
Servicing burden
Registry administration and retirement. A credit that is used must be retired, and a credit counted twice is worthless and reputationally damaging.
Principal risk
Double counting and methodology risk. Credits have been invalidated retrospectively when the underlying methodology was found wanting.
Liquidity, realistically
Varies enormously by registry and vintage. Comparability between credit types is weaker than the market implies.
Structure a renewable energy certificate.
Launch Studio will not let this asset reach an offering without the parties and documents listed above.