Procurement Channels
Organizations can access CDR supply through two main routes: direct procurement, where buyers contract directly with project developers, and intermediated procurement, where buyers purchase through a platform, marketplace, or aggregation service. The table below provides a high-level introduction and comparison of the main channels through which organizations can access CDR supply.
Table 2: Procurement Channels Comparison
| Criteria | OTC Brokers / Retailers | Marketplaces | Buyer Coalitions | Competitive Sourcing (RFP) | Project Development |
|---|---|---|---|---|---|
| Price & Transaction Cost | Higher prices due to intermediary margins | Competitive pricing; stable; platform fees | Competitive group pricing; economies of scale | Potentially very competitive (supplier bidding) | High upfront investment; low long-run cost if successful |
| Access to Supply & High-Integrity Credits | Depends on broker network; quality varies | Broad access; many platforms apply quality filters | Curated, vetted supply based on collective standards | Direct sourcing; quality depends on buyer diligence | Full control; tailored high-quality supply but long lead times |
| Effort & Time to Implement | Very low; fast purchase | Low; easy setup | Moderate; joining/admin required | High; needs preparation, evaluation, negotiation | Very high; 3–5+ years for credit delivery |
| Risks | Broker reliability varies; inconsistent due diligence | Lower project risk with strong platform screening | Lower risk through collective vetting & guarantees | Moderate delivery risk; mitigated via contract terms | Significant project and financial risk borne by buyer |
| Public & Stakeholder Perception | Mixed; depends on transparency | Generally positive | High integrity when collective standards are clear | Positive if process is transparent | Very positive if transparency is strong; negative if project fails |
| Regulatory Outlook | Requires careful review of broker accountability | Depends on platform compliance | Favorable; groups often align with regulators | Favorable with strong documentation | High compliance burden; requires proactive management |