Image courtesy of Shopify.

Shopify, a corporate purchaser of durable carbon removal, recently released its latest Climate Report, which contains a deep dive examining the current state of the carbon removal market.

There are a number of development areas that will determine the supply and cost of carbon removal in the long-term.

Shopify’s assessment is based on data it collected from the durable carbon removal suppliers in its portfolio.

Shopify examined three areas:

• Technology: Development is progressing well, but deployment has current challenges.
  • Entrepreneurs have flooded the market with new ideas and are achieving key technical milestones, but companies beginning to deploy have faced barriers, which is not unexpected in a nascent market with new technologies.
• Financing: Pre-seed, seed, and project finance need critical attention.
  • Venture funding has consistently been available for companies with a few early buyers, but there are large funding gaps at the pre-seed, seed, and project finance stages.
  • Investors need to get comfortable funding early projects without a buyer, and corporate buyers to sign large offtakes with projects that are ready to scale to unlock project finance.
• Commercialisation: Policy support is growing, while MRV needs real solutions.
  • Billions of dollars are now available for carbon removal through various government programs, but to have trust in projects we need existing standard bodies to step up, or new third parties to step in, to create methodologies for durable carbon removal pathways in a timely manner, and fill other roles like verification.

For the full report click here.