Amplifying Carbon Removal Impact with Blended Portfolios

The United Nations’ Intergovernmental Panel on Climate Change has set a path to achieve global net zero goals by 2050: removing and securely storing around 10 gigatons of CO2 equivalent annually. While carbon removal credits are crucial, the market faces challenges like high costs and limited durable storage solutions. Source Carbon aims to address these challenges with innovative carbon removal portfolios, simplifying access and making a tangible impact.

Since its inception, the carbon removal market has seen transactions of 5 million tons, with only 215,000 tons delivered—a clear indication of a market in its formative phase. These figures highlight the pioneering spirit of early adopters who are supporting the development of new technologies and projects, paving the way for future scalability.

The path to expanding the carbon removal market involves simplifying access to financing for these initiatives. This is where Source Carbon steps in, with its innovative carbon removals portfolio, which aims to demystify the process and make it more accessible to businesses looking to make a tangible impact.

The Power of Diversified Carbon Removal Portfolios

Carbon removal involves techniques that extract CO2 from the atmosphere, using either natural processes or technological solutions. This approach goes beyond mere emission reduction, representing actual removal of CO2 from the air.

By applying strategies common in other financial sectors, such as diversified portfolios and active risk management, Source Carbon makes the carbon removal market more approachable for a wider array of businesses. This not only enhances liquidity but also makes carbon removal credits more attainable for companies of different sizes and risk tolerances.

-Diversification in Carbon Removal for Accessibility: Currently, removals account for a small slice of the carbon credit market. The cost of long-duration removal credits can be prohibitive. Source Carbon’s strategy of diversifying across various project types enables a blended pricing model that’s more accessible to the average business, facilitating faster market growth.

-Strategic Transitions in Carbon Removal Investments: Businesses face a dilemma: opt for less durable removals at a lower cost or invest heavily in long-term solutions. Source Carbon offers a way to navigate this, allowing investments to evolve in line with the Oxford Offsetting Principles, transitioning from temporary to more permanent solutions as they become more viable.

-Flexibility and Active Management in Carbon Removal: The history of renewable energy demonstrates the potential for green technologies to become more affordable. Source Carbon’s managed portfolio can adapt to include the most scalable and cost-effective technologies over time, freeing buyers from being tied to single technologies at today’s prices.

-Simplifying Risk Assessment in Carbon Removal Projects: Evaluating the myriad of early-stage carbon removal projects and technologies is a daunting task for many businesses. Source Carbon leverages modern portfolio theory to manage risks effectively, ensuring due diligence and providing confidence in the investments.

Closing the Gap to Net Zero

Achieving net zero requires a comprehensive toolkit, combining innovative and traditional strategies. Source Carbon’s diversified carbon removal portfolios offer businesses a practical, strategic method to invest in sustainability without compromising their operational goals. By balancing cost, scalability, and durability, Source Carbon contributes significantly to the global pursuit of net zero, proving that sustainability and business success can go hand in hand. 

Embrace the change with us—make sustainability a cornerstone of your business strategy. Book a consultation with a Source Expert today.