Carbon Removal Newsroom

Tipping Point for Carbon Markets?

Sep 19, 2023

The podcast discusses the state of the voluntary carbon market, the scrutiny on carbon offsets, and the implications for companies and governments. They explore the acquisition of Carbon Engineering by an oil company and the debate surrounding oil companies' involvement in carbon removal. The chapter also highlights challenges and concerns in carbon markets, including shady deals and the need for stronger standards. Additionally, they discuss capital backing for DAC technology, NOAA's awards for marine CDR research, and recent scientific funding projects for carbon removal in the marine environment.

34:49

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Quick takeaways

Increasing scrutiny and criticism have caused a decrease in demand for carbon offsets in the voluntary carbon market, potentially pushing the market towards a tipping point.

The involvement of fossil fuel companies in the carbon removal industry, such as Oxy's acquisition of carbon engineering, sparks debate about perpetuating the status quo versus bringing capital and longer time horizons.

Deep dives

Scrutiny of Carbon Offsets and Tipping Points in the Voluntary Carbon Market

Demand for carbon offsets in the voluntary carbon market has decreased recently due to increasing scrutiny and criticism. Notably, a study published in Science revealed that many red plus projects are less beneficial than claimed. Shady deals and questionable forest carbon deals have also raised skepticism. This skepticism, combined with concerns about the integrity of offsets, may push the market towards a tipping point. Companies and governments relying on carbon removal to fill the gap may need to find more reliable offset options.

Introduction

2min

Challenges and Concerns Surrounding Carbon Markets and Offset Market

16min

Oil Companies' Acquisition of Carbon Engineering

11min

Challenges of Capital Backing for Dax Technology and NOAA Awards for Marine CDR Research

2min

Scientific funding and awarded projects for carbon removal, with a focus on marine technologies

4min

The voluntary carbon market (VCM) has a total value of over $2 billion, and some predictions show it growing to $10 billion in just a few years.

But the integrity of the carbon offsets available has come under increasing scrutiny in recent years, causing demand to slow and prices to go down.

According to a new report from Morgan Stanley the market is approaching a ‘tipping point’, as more and more companies hesitate to stake their environmental claims on offsets that may be debunked in the newspaper the next day.

If the market does hit a tipping point, what’s next? And what does it mean for the companies and governments hoping that “carbon removal” can fill the gap with a more reliable type of offset?

Our panel will take a look at implications of the oil company Oxy purchasing Carbon Engineering. Is big oil good for DAC?

Whether or not oil and gas should be involved in carbon removal is healthy debate within the CDR community, and this announcement made headlines in the broader environmental media too.

Listen to hear what our policy panel, Holly Buck and Wil Burns, think about this news and its aftermath.

On This Episode

Resources

Article on “Tipping Point” report

West et al. Paper on Carbon Offsets

Liberia + Dubai Offset Deal

Oxy buys Carbon Engineering

NOAA Awards