You are here: Home / How it Works / FAQs

Frequently Asked Questions

Please find below our answers to some of the key questions about Bonsucro Credits and credit trading
What is a Bonsucro Credit?

A Bonsucro Credit is proof that a unit of sugarcane, raw sugar, ethanol or molasses has been sustainably produced in accordance with Bonsucro’s Production Standard.Bonsucro certified productssuch as sugarcane, raw sugar, ethanol and molasses can be sold through a physical supply chain, but producers can also sell them asBonsucro Credits, which are traded separately from the physical product (which is then sold as conventional product).

One Bonsucro Credit represents:

  • One tonne of sugarcane

  • One tonne of raw sugar

  • One tonne of molasses

  • One cubic metre of ethanol

Who can sell sugarcane credits?

In order to sell Sugarcane Credits, a seller must be:

  • A certified independent farmer who is also Bonsucro Chain of Custody certified,

  • OR A Group Manager holding the Bonsucro Smallholder Production Standard certification

Why is Chain of Custody certification also required from the seller (including independent farmers)?
The Production standard does not include criteria for an auditor to audit against to verify that the seller does not oversell. The criteria are captured in the CHoC standard, hence why CHoC certification is required.
Is there a minimum number of credits an organisation can purchase ?

Yes, the minimum is 25 credits regardless the type of credits bought. There is no maximum.

How much is the Bonsucro fee and how is the fee used?

Bonsucro charges a brokerage fee on Credits purchased. On the launch of the Credit Trading Platform, these brokerage fees will be calculated as shown below.  This fee is used to pay for the necessary running costs associated with the Credit Trading Platform.  Thereafter, 50% of the remaining income from the brokerage fee will be ring-fenced for Bonsucro Impact Project. The funding will be used by Bonsucro to support initiatives and projects that pilot or scale sustainable sugarcane production in key origins in accordance with our theory of change and priorities. The income generated in one financial year will be allocated for expenditure in the following financial years, with input on priorities from members on an annual basis.   The remaining 50% of income from the brokerage fee is allocated as unrestricted income to support and sustain Bonsucro and the delivery of the organisational plan.  Bonsucro is developing internal procedures to ensure an appropriately fair and transparent process for how the funding will be allocated, managed and reported on.  We will be able to provide more details in due course.

  • Raw sugar credits: US$ 1.30 per credit

  • Sugarcane credits: US$ 0.16 per credit

  • Molasses credits: US$ 1.30 per credit

  • Ethanol credits: US$ 1.30 per credit

Will the Credits be ‘deducted’ from the platform once sold?
No, the platform does not ‘deduct’ credits from the Seller’s account and it will be up to the Sellers to manage their available volumes in line with the Mass Balance Chain of Custody Standard. This means that, once the credits are sold and all is confirmed, it will be up to the Seller to update their own inventory. In other words, the Credit Trading Platform DOES NOT provide volume management functionalities, and this remains part of Sellers’ internal control systems. The records will be verified by the auditors during the audit.
When does the payment of credits to the Seller occur?
The payment will be made once the transaction is concluded. Buyers will have 90 days payment terms to Bonsucro and, once the funds are cleared by the Buyer, Bonsucro will transfer them to the Seller’s indicated account within two weeks. 
How does the invoicing and payment work?
Bonsucro will invoice buyers on behalf of sellers based on the agreed price and volume per transaction. Buyers have 90 days payment terms. Bonsucro will transfer funds to sellers after receiving them from the buyer.
Can the Buyer or the Seller cancel any transaction made?

No. Once the transaction is matched/confirmed via the platform it will not be possible to withdraw it and T&Cs will apply. However, if an offer to sell is placed on the market but it is not matched by a bid to buy, or vice versa, it can be withdrawn and changed (but only if not matched yet).

When can I make a claim?
Buyers can redeem and claim their Credits within 12 months from the date of purchase. This must be done through the redemption function on the Credit Trading Platform and in line with Bonsucro Claims & Labelling Rules.
Is there anything we need to do after selling credits?
Bonsucro Credits are traded virtually and are not trades of physical products. The amount of credits sold must be in a seller's available volumes and must be deducted from their inventory in accordance to Bonsucro Chain of Custody Standard.
How does an FBO deal work and when is it applicable?
Any buyer Bonsucro member can buy credits to support sustainable production, and many companies use credits to “offset” their non-certified supplies and reach their sustainable procurement targets. However, it is important to note that Bonsucro credits cannot be used to cover negative balances in the Mass Balance inventory, i.e. credits are completely separate from the CHoC mass balance system of the buyer.  Traders can trade on the new platform through the FBO Off-Market functionality ('For the Benefit Of'), where a trader/intermediary buys credits on behalf of an ultimate buyer. The ultimate buyer has to be a Bonsucro member and have an account activated on the platform.  The deal is negotiated Off-Market and, once agreed, the Trader/FBO needs to record it on the platform within 30 days, recording who the ultimate buyer is, the price agreed with the seller and the final price to the ultimate buyer. The seller and Bonsucro then need to confirm the details of the trade and, once that's happened, the FBO trader will manage the invoicing to the buyer and payment to the seller for the credits and to Bonsucro for the fee. Once the payment to the seller and Bonsucro are settled, the credits are released on the ultimate buyer account for claiming. Traders cannot buy and re-sell credits through the new platform and they can only buy 'For the Benefit Of' as described above.