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Power generation and renewables

Carbon credit project financial model, built free.

A three-statement Excel model for a carbon credit project developer, built from your own figures and checked to balance.

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  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Develops reforestation, avoided-deforestation, soil carbon, methane capture and cookstove projects that generate carbon credits over a crediting period, selling them spot, under forward offtakes or to government, and sharing revenue with landholders.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and net asset value, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.

Annual · 10 years · Low detail
Carbon credit project sample model.xlsx
The How It Works sheet of the sample carbon credit project model

The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.

How it works

How the model works for a carbon credit project.

  1. How it earns revenue3 formulas
    Credit sales and credits held · All carbon projects
    Carbon credit salesContract salesSpot sales
    Credit sales and credits held · All carbon projects
    Credits held (at cost)Credits held at period endCost per credit carried in inventory
    Credit sales and credits held · All carbon projects
    Credits added to inventory less cost of credits soldCredits held (at cost)Credits held (at cost), last periodfrom at cost), last period
  2. What drives its costs3 formulas
    Project costs and landholder share · All carbon projects
    Project establishment and MRV costsEstablishmentLand managementVerification and reportingRegistry fees
    Project costs and landholder share · All carbon projects
    Landholder and community shareCarbon credit salesfrom credit sales and credits heldLandholder share of credit revenue
    Operating expenses · Across the business
    Total FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
  3. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  4. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

16 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Exchange rate (US dollar)Exchange rate by financial year
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • DebtAmortising term loan
  • Equity raisingDistribution reinvestment plan
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Net asset valueBook net asset value
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Discount rate (WACC)CAPM at target gearing
  • Burn and runwayRunway to the forecast cash-out date
  • Carbon credits generatedArea × sequestration curve less bufferThe abatement or removal a project achieves, less buffer and uncertainty deductions, and when credits are issued.
  • Credit sales and credits heldForward offtake contractCredits sold spot, under forward offtakes or to government, and credits held in inventory.
  • Project costs and landholder shareEstablishment, management and verification costsEstablishment, monitoring, verification and registry costs, and the landholder's or community's share of revenue.
Key numbers

The numbers it tracks.

  1. 01credits issued (tCO2e)
  2. 02buffer deductions
  3. 03realised price per credit
  4. 04cost per credit
  5. 05landholder share
  6. 06project IRR
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
  • Closed-end fund, syndicate or trust
Related models

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Every energy and utilities model

Looking for a carbon credit project financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.