Spotted: The number of organisations committing to climate targets and offsetting has been growing rapidly. However, this growth also represents a major challenge, because the voluntary carbon market is still in its infancy, meaning there is a lack of credible emission reduction programmes and questionable investments in carbon projects with no actual reductions.
Climate-tech startup Goodcarbon is working to change this by focusing on nature-based solutions (NbS), such as the conservation and restoration of forests or oceans. Through their platform, Goodcarbon connects NbS projects to capital, giving projects a stream of income and allowing organisations to offset their emissions with verified high-quality NbS projects. Project developers can also use the platform to sell Forward Credit contracts and auction ownership shares in their projects.
All projects listed on Goodcarbon are subject to a stringent verification process. The platform works together with existing verification and standardisation bodies such as Verra and Gold Standard, and also applies its own impact assessment scheme to ensure the platform only hosts the highest quality projects. The advantage for businesses is that not only can they invest, secure in the knowledge they are not greenwashing, but they can also use the platform to turn carbon offsetting into an investment opportunity.
According to many, the voluntary carbon market is largely non-transparent and is swamped with low-quality NbS projects that do not actually work. As Jerome Cochet, Co-Founder And Managing Director Of Goodcarbon, points out, “We have a major supply problem as project developers face significant challenges. They have high upfront costs, but a lack of funding, little appreciation of co-benefits such as biodiversity protection, and a high dependence on brokers. We are here to solve these challenges by converting natural capital into financial products.”
As of September 2022, thousands of organisations, representing $38 trillion, have committed to emission reduction targets approved by the Science Based Targets initiative (SBTi). So it is no wonder that we are seeing a number of innovations aimed at offsetting. These include a platform that makes it easier for farmers to sell carbon credits, and a blockchain infrastructure for trading in forward carbon credits.
Written By: Lisa Magloff