What's Your Problem? A Billion-Dollar Bet on Carbon Removal
Jul 10, 2025
Nan Ransohoff, the head of climate at Stripe and Frontier, revolutionizes the carbon removal industry with a bold $1 billion commitment. She discusses how economic strategies can motivate companies to invest in sustainable technologies beyond tree planting. Delving into the innovative models akin to those in vaccine development, Nan highlights the importance of establishing a stable market for carbon solutions. The conversation reveals the blend of finance, innovation, and ethical considerations fueling the push for effective environmental strategies.
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Advanced Market Commitments Explained
- Advanced market commitments (AMCs) guarantee future demand for products that don't yet exist.
- AMCs fix incentive problems by creating viable markets to develop public goods like vaccines and carbon removal.
Carbon Removal as a Public Good
- Carbon removal is a public good with unclear market demand, making private investment risky.
- Defining clear criteria for carbon removal helps create a viable market while encouraging innovation.
Role of Government Policy
- Governments must implement demand policies, like direct procurement or carbon pricing, to sustain carbon removal.
- A patchwork of policies will likely emerge to tackle this public good challenge effectively.