Introduction to JustCarbon
To meet the goals of the Paris Climate Change Agreement and restrict global heating to under 1.5℃, the world has been primarily - and rightly - focused on emission reduction. However, it’s now apparent that we are likely to fall well short of targets and are on track to use up our carbon budget within the next decade, potentially reaching 1.5 degrees as early as 2033[1]. It is now imperative that we build the tools and financing mechanisms for carbon dioxide removal (CDR) at speed and at scale.
A key mechanism for financing CDR, particularly via nature-based solutions is the Carbon Market, primarily those for voluntary action by companies and individuals. However, whilst these are growing rapidly, they are not built for the scale needed. They increasingly utilise robust project design and impact measurement techniques but are reliant upon outdated technology and the assets produced - carbon credits - are traded on disparate marketplaces, most of which are difficult to access, opaque and low tech. The market is thus reliant on expensive brokers and retailers, who in many cases add margins upwards of 30% and benefit from the market’s complexity and opaque prices, making it expensive and inefficient to both buyers and sellers.
Project developers often undertake activities on a merchant basis and as such typically want to sell their carbon credits as quickly as possible when produced, valuing certainty of off-take and a price that will enable them to cover their costs and invest into new projects. Buyers, be they retail or institutional, want to know for certain that they’ve achieved the best price to offset their unavoidable carbon footprint , and procured high-quality credits that can ensure they are not subject to accusations of greenwashing or double counting. Matching the two is largely still a time consuming and costly manual process.
A new marketplace is needed that increases liquidity, provides price certainty and encourages new players into the market. That marketplace is JustCarbon.
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