How to Navigate Carbon Markets

Supercritical just released a new report on biochar offtakes. As someone who works with project developers, here’s my top takeaway 👇 Among a small group of active buyers, there’s fierce competition for a limited, high-quality supply of carbon credits. But most potential buyers? They’re still hesitating. In fact, only 5% of SBTi signatories are currently purchasing CDR. Why? 👉 Reputational risk. 👈 If carbon credit buyers make a mistake, they can get sued for greenwashing. We’re seeing this unfold with the lawsuit over Apple Watch’s carbon neutral claims. This backlash is counter-productive. We need MORE companies to feel comfortable procuring CDR ... not less. So, how can we remove barriers to entry? Three big ideas: 1️⃣ Corporate-facing groups like SBTi and Greenhouse Gas Protocol should provide buyers a clear path forward if carbon credits turn out to be fraudulent. 2️⃣ Policymakers should STOP making the industry scarier and harder. Policies like California’s AB 1305 or the EU’s Green Claims Directive can be punitive, but should also be prescriptive. 3️⃣ Startups (like Supercritical) should keep simplifying the market, making it easier for companies to purchase CDR.👏 ❓Agree? How else can we make it easier for corporates to enter the carbon markets? Image credit: Supercritical Biochar Offtake Report Download the report here: https://lnkd.in/e-5gFNr4

🔍 Let’s talk carbon credit ratings and due diligence. Why do more perspectives lead to better decisions? In today’s carbon markets, one misstep can trigger greenwashing accusations and undermine years of sustainability work. That’s why due diligence on your carbon credit purchases isn’t just smart - it’s essential. 💡 Most companies using ratings lean on just one agency to assess project quality. But here’s what we’ve learned: Using multiple ratings agencies is one of the most powerful ways to build confidence and mitigate risk. Here’s why 👇 📊 Get a Full Picture of Risk Every agency evaluates risk differently. A project might receive a high rating from one agency, while another flags possible risks. Cross-referencing gives you a more complete view - and helps you avoid blind spots. 🔬 Tap into Different Strengths Each agency has unique expertise. One might specialize in evaluating nature-based projects, another in technology-based. Understanding these nuances allows you to make smarter, more informed decisions. 🤝 Build Credibility & Trust When investors or stakeholders ask how you sourced credits, being able to show that multiple top-tier agencies vetted your portfolio strengthens your credibility. 🌍 Access More Projects Most projects are only reviewed by one or two agencies. A single-source approach means you might be missing great options that meet your standards. That’s why we incorporate all major rating agencies Sylvera Calyx Global BeZero Carbon and Renoster into our diligence process at CNaught. That way, you get trusted, science-backed climate impact without needing to juggle multiple subscriptions or methodologies. 👉 Read more on our blog: https://lnkd.in/gDG8QagR #carboncredits #sustainability #duediligence #netzero #climateaction #voluntarycarbonmarket #CNaught

Navigating the complex landscape of voluntary carbon credits and markets requires a strategic portfolio approach. This guide illustrates how businesses can balance their carbon credit strategies by combining immediate benefits from natural climate solutions with long-term technology-based solutions crucial for CO2 removal and storage. It offers detailed steps for leveraging high-integrity voluntary carbon credits to fund emissions reductions beyond their value chains. This framework aims to catalyze action and investments in balanced carbon credit portfolios, supporting global climate targets. Read: https://lnkd.in/eip9FvXJ Attributions: WBCSD – World Business Council for Sustainable Development: Giulia Carbone | Alba Rodriguez Ruiz Bain & Company: Dale Hardcastle | Brad Denig #CarbonMarket #CarbonCredits #VCM #ClimateTargets