{"id":178,"date":"2021-02-23T10:34:21","date_gmt":"2021-02-23T09:34:21","guid":{"rendered":"https:\/\/recap.wiki\/?post_type=ht_kb&#038;p=178"},"modified":"2021-11-23T16:50:17","modified_gmt":"2021-11-23T15:50:17","slug":"buying-vs-producing","status":"publish","type":"ht_kb","link":"https:\/\/recap.wiki\/index.php\/recap\/buying-vs-producing\/","title":{"rendered":"Buying vs producing. What differences ?"},"content":{"rendered":"\n<p>At the end of the two transactions described in <a href=\"https:\/\/recap.wiki\/index.php\/recap\/example1\/\">9.1.1<\/a> and <a href=\"https:\/\/recap.wiki\/index.php\/recap\/example2\/\">9.1.2<\/a>, the two-reporting entity own the same asset. Their total assets and liabilities are the same. The only difference is that reporting entity A have book 100 CU as \u201cUnpaid-Carbon acquired by the company\u201d. While reporting entity B have booked the same 100 CU as \u201cUnpaid-Carbon used by the company\u201d. <\/p>\n\n\n\n<p>This reflects the fact that whole they own a similar asset, reporting entity A did not take part in the decision that led to the production of the asset and to the emission of carbon. It merely acquired an existing asset. While reporting entity B decided to produce the asset and took an active part in the emission of carbon during the production process.<\/p>\n\n\n\n<p>At the end of the two transaction described in <a href=\"https:\/\/recap.wiki\/index.php\/recap\/example3\/\">9.2.1<\/a> and <a href=\"https:\/\/recap.wiki\/index.php\/recap\/example4\/\">9.2.2<\/a>, both entity A and entity B have sold their asset. <\/p>\n\n\n\n<p>However, while entity A ends up with an empty balance sheet (with no asset or liability), entity B still carries a 100 CU \u201cUnpaid-Carbon liability used by the company\u201d and an equivalent negative equity of 100 CU. <\/p>\n\n\n\n<p>This reflects the facts that across all the transaction described, entity A never took an active part in any process that resulted in carbon emission, and as such never itself emitted carbon. <\/p>\n\n\n\n<p>On the other hand, entity B, took an active part in producing an asset and emitted carbon in that process. As such its \u201cUnpaid-Carbon liability used by the company\u201d remains on its Carbon balance sheet, even though the asset its produced using that carbon was sold<\/p>\n","protected":false},"author":1,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":""},"ht_kb_category":[32],"ht_kb_tag":[],"class_list":["post-178","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-examples"],"_links":{"self":[{"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/ht_kb\/178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/comments?post=178"}],"version-history":[{"count":3,"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/ht_kb\/178\/revisions"}],"predecessor-version":[{"id":261,"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/ht_kb\/178\/revisions\/261"}],"wp:attachment":[{"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/media?parent=178"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/ht_kb_category?post=178"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/recap.wiki\/index.php\/wp-json\/wp\/v2\/ht_kb_tag?post=178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}