TORONTO — Base Carbon Inc., a financier of environmental projects in the global voluntary carbon markets, released its year-end 2025 financial results on March 31, 2026, highlighting progress in its project portfolio amid a push toward compliance-eligible carbon credits. The company, which trades on the Cboe Canada exchange under the ticker BCBN and on OTCQX as BCBNF, reported total assets of $108.9 million as of December 31, 2025, including $5.7 million in cash and cash equivalents, $79.2 million in investments in carbon credit projects, and $21.2 million in carbon credit inventory. Liabilities stood at $8.4 million, primarily deferred income tax liabilities.
For the full year 2025, Base Carbon recorded net earnings of $0.2 million. This figure included $1.8 million in realized cash-settled gains on investments in carbon credit projects and $11.3 million in unrealized gains on those investments. Offsetting these were cash and non-cash operating expenses totaling $10.2 million, as well as a $2.9 million loss from re-quantifying carbon credit inventory to the VM0050 methodology. Primary operating expenses broke down to $3.0 million in salaries and wages, $1.8 million in consulting and professional fees, $0.7 million in general and administrative costs, and a $3.9 million write-down of carbon credit inventory.
"In 2025, Base Carbon continued to advance our project portfolio along the life cycle of an environmental project. Notably as of late, we achieved first issuances under the new methodology in Rwanda, achieved compliance-market tagging, and executed on first sales," said Michael Costa, CEO of Base Carbon, in a statement accompanying the results. The company also announced the publication of its first annual shareholder letter, which outlines key views on the market, an overview of the sector, and strategic priorities moving into 2026.
Base Carbon emphasized a disciplined approach to risk management as it seeks to unlock value from its existing portfolio and contractual expansion options. During 2025, the company repurchased and cancelled 7.2 million shares at an average price of C$0.56 per share under its normal course issuer bid program and various share purchase agreements. This was below the volume-weighted average share price of C$0.75 on Cboe Canada for the year. Since inception through year-end 2025, a total of 25.6 million shares have been bought back at an average of C$0.49 per share. Management described these repurchases as an "attractive and accretive capital allocation strategy" when market valuations disconnect from underlying asset values, with plans to continue tax-efficient returns to shareholders.
One of the standout developments in 2025 was the advancement of the Rwanda cookstoves project. In September 2025, the carbon credit registry Verra approved the application of the new VM0050 methodology to the project, allowing a shift from the previous VMR0006 standard for both existing inventory and future issuances. This transition led to the application of Verra’s CORSIA-eligible label in February 2026, opening doors to compliance-driven demand, particularly in global aviation carbon offsetting markets. During the year, Base Carbon received carbon credits directly into its inventory and recognized a new revenue participation asset tied to credits issued to project partner DelAgua.
In the first quarter of 2026, following year-end, DelAgua sold about 200,000 CORSIA-eligible carbon credits and remitted net proceeds of approximately $0.7 million to Base Carbon under their revenue-sharing arrangement. This included a holdback for the company’s share of insurance premiums on CORSIA-tagged credits in inventory. According to the release, this marked "the first monetization of carbon credits from the Rwanda cookstoves project following the VM0050 transition and CORSIA-eligible tagging, demonstrating the project’s enhanced liquidity and relevance within global compliance carbon markets."
The Rwanda project, operated through Base Carbon's wholly-owned subsidiary Base Carbon Capital Partners Corp., focuses on distributing clean cookstoves to reduce emissions in households. The achievement of CORSIA eligibility aligns with the International Civil Aviation Organization's Carbon Offsetting and Reduction Scheme for International Aviation, which aims to cap net emissions from international flights starting in 2027. Base Carbon noted that this positions the project to tap into growing demand from airlines seeking high-quality offsets.
Meanwhile, the Vietnam household devices project showed strong execution throughout 2025, completing Phase 1 with approximately 7.4 million carbon credits issued, delivered, and monetized under a fixed-price offtake agreement. This generated net cash proceeds of about $1.8 million for Base Carbon during the year. Cumulatively, the project has fully repaid the company's invested capital and produced significant realized cash gains, according to the financial report.
The Vietnam initiative involves distributing household devices, such as water purifiers and efficient stoves, to lower emissions in rural areas. During 2025, Base Carbon began transitioning the project to Verra’s updated VM0050 methodology to improve credit quality and align with emerging compliance standards. The project has now entered Phase 2, where Base Carbon holds an option to purchase all future carbon credits annually at a fixed price. This setup offers continued exposure to issuances while allowing flexibility in capital use and sales timing.
"The Vietnam household devices project is a foundational example of the Company’s ability to originate, develop, and monetize large-scale carbon reduction projects, while retaining embedded growth optionality through expansion rights and future carbon credit purchases," the release stated. Partners in the project include SIPCO and an offtaker, with the company crediting its structuring, underwriting, and execution capabilities for the success.
In India, Base Carbon's afforestation, reforestation, and revegetation (ARR) project made steady progress by year-end 2025, completing initial planting of about 6.5 million trees with survival rates meeting expectations. The project advanced through validation under Verra and transitioned to the updated VM0047 methodology, the latest standard for such nature-based efforts. It also targeted Verra’s ABACUS label, backed by Amazon, which imposes stricter requirements on additionality, transparency, and permanence to boost credit integrity.
As of December 31, 2025, the India ARR project remained in development, with cumulative capital deployed reaching $8.2 million. In December 2025, Base Carbon and its partner, Value Network Ventures Pte Ltd., amended their agreement to adjust capital payment schedules through 2027, aligning with the VM0047 transition. This included an additional $108,000 in payments to support the shift, though the overall payment amount stayed unchanged—only the timing was modified.
Post year-end, in the first quarter of 2026, Base Carbon made milestone-based payments totaling $1.2 million for validation, verification, and maintenance activities. The project, which involves partnerships with local small-land owners in India, represents Base Carbon's foray into large-scale nature-based removals. It includes expansion rights for future growth, with capital deployment structured in stages to manage risk.
Base Carbon, founded to provide capital and management to carbon removal and abatement projects worldwide, operates primarily in voluntary carbon markets but is increasingly targeting compliance avenues like CORSIA and potential Article 6 mechanisms under the Paris Agreement. The company’s portfolio spans cookstoves in Rwanda and Vietnam, and tree-planting in India, leveraging technologies for efficiency and transparency in environmental industries.
Looking ahead, Base Carbon plans to focus on monetizing its credits and exercising expansion options where viable. However, the release included a cautionary note on forward-looking information, highlighting risks such as regulatory changes, project partner performance, market prices, and verification outcomes that could affect results. For the Rwanda and Vietnam projects, success depends on device usage, partner execution, and market acceptance of methodologies. In India, factors include tree survival, local cooperation, and weather events.
For the India ARR project specifically, assumptions include adherence to timelines, counterparty performance, Verra validation, and sufficient funding for commitments. The company stressed that while management bases projections on reasonable expectations, actual outcomes may differ due to known and unknown risks. Investors can contact Base Carbon’s investor relations at +1 647 952 3979 or investorrelations@basecarbon.com for more details, with media inquiries directed to media@basecarbon.com.
As the voluntary carbon market evolves toward greater integration with compliance frameworks, Base Carbon's 2025 results underscore its positioning for growth. With first sales under new methodologies and ongoing project developments, the firm appears poised to capitalize on rising demand for verified offsets, though market volatility and regulatory shifts remain key uncertainties.