🔴Carbon Offset Challenges

They're great, but far from perfect!

Carbon offsets are a fantastic tool. They provide the capital needed to incentivize sustainability projects. Without carbon offsets, there would be far less eco-conscious projects on Earth. This would mean faster global warming and far more costly future climate change solutions. However, today’s carbon offset market is far from perfect. These market inefficiencies translate to slower action on climate change.

Costly - The minimum order size for the carbon offset wholesale market is around $50,000. This high cost means that very few people have the resources to buy carbon offsets reliably. Otherwise, you must use the spot market, where quality and price vary drastically.

Illiquid - Different initiatives produce different carbon offsets. This makes knowing what carbon offsets to buy a challenge. Brokers can help, but the unregulated nature of the voluntary carbon offset market makes it difficult to identify the best partners.

Unknown Quality - The largely unregulated market means that some carbon offsets are not backed by real sustainable activity. Other shady dealers resell retired carbon offsets, which should be decommissioned and not resold. Buyers must be cautious of their counterparty. A few bad actors make for a tricky situation.

The Result - The current state of the carbon offset market means that the vast majority of people can’t get access to the carbon offsets they want and need. This lack of access benefits the small handful of parties while accelerating climate change! These inefficiencies trickle down to your average person and impact all of humanity. We need a solution that makes buying carbon offsets as easy as ordering something from Amazon.