Tero Carbon formalizes SOP for VCU trading on GEAP and strengthens integrity in the voluntary carbon market
Tero Carbon, a Brazilian environmental asset certification body, has formalized the Standard Operating Procedure (SOP) that establishes the operational flow for the commercialization of Verified Carbon Units (VCUs) certified by Tero Carbon on the GEAP – Global Environmental Asset Platform marketplace.
The document clearly defines institutional responsibilities, transfer procedures, operational custody, redemption processes and retirement rules, using the Tero Platform exclusively as the official registry for asset movements.
Clear institutional role separation
The SOP establishes a governance structure that distinguishes:
- Tero Carbon as certification body and registry administrator;
- The Tero Platform as the registry environment responsible for operational custody, transfers and retirement of VCUs;
- GEAP as the marketplace responsible for intermediation and commercialization.
Trading occurs exclusively on the GEAP platform, while all operational movements are recorded on the Tero Platform with registration on the public Polygon blockchain, ensuring traceability and transparency.
Operational custody and asset integrity
Under the defined flow, VCUs intended for commercialization are transferred to GEAP’s account within the Tero Platform under operational custody, while economic ownership remains with the holder until the transaction is concluded, unless otherwise contractually agreed.
This structure reinforces:
- Legal certainty;
- Lot-level segregation;
- Full traceability;
- Alignment with internationally recognized marketplace practices.
Exclusivity and redemption rules
The SOP establishes a minimum 60-day exclusive listing period on GEAP for the lot designated for commercialization, unless the sale is concluded earlier.
After this period, if no sale has occurred, the holder may request redemption of the VCUs in accordance with applicable contractual conditions.
Retirement with immutable blockchain record
Where applicable, retirement of VCUs is executed through the Tero Platform with:
- Public blockchain registration (Polygon);
- Permanent status change to “Retired”;
- Publication on applicable platforms;
- Potential interoperability with CAD Trust, according to registry integration flows.
Retirement is definitive and irreversible, and units cannot be reversed, corrected, or replaced once executed.
Strengthening voluntary carbon market infrastructure
The formalization of the SOP represents a structural advancement in Brazil’s voluntary carbon market by integrating:
- Environmental asset certification;
- Digital registry with blockchain traceability;
- Structured pathway to commercialization in an organized marketplace;
- Clear transfer and retirement procedures.
This initiative reinforces Tero Carbon’s institutional commitment to integrity, transparency and governance in the carbon market, contributing to a safer and more predictable environment for project developers, investors and buyers.
More information:
https://terocarbon.com/home/programas/
About Tero Carbon
Tero Carbon is a Brazilian-based carbon asset certifier dedicated to ensuring environmental integrity, transparency, and credibility across the carbon market value chain. The organization develops and administers certification standards and methodologies adapted to national and international contexts, supported by robust governance, independent assurance, and secure registry infrastructure.
Through its certification programs, Tero Carbon supports projects that contribute to climate change mitigation, environmental protection, and sustainable development, while promoting trust and accountability in carbon markets.
About GEAP – Global Environmental Asset Platform
GEAP is an electronic trading platform in Brazil for carbon credits, creating an organized marketplace for environmental assets with the goal of providing a liquidity pool for trading these assets. GEAP’s objective is to offer transparency, price formation, and greater liquidity to the currently opaque carbon credit market, while also preparing for the future regulated market and the significant market developments that will emerge alongside it. GEAP’s shareholders include CERC, which focuses on post-trade activities, and Ludovino Lopes, from Ludovino Lopes Advogados, one of the leading experts in environmental law and carbon market structuring.