Carbon credits are humanity’s best chance at stopping climate change while green technology catches up. Why aren’t more corporations and consumers using this tool?
We need to apply more thoughtful solutions to climate change.
Humanity needs a stopgap — a way to offset carbon emissions while the battery and sustainably energy technology catches up to our needs. Carbon credits represent our best bet. These tools facilitate ecological and humanitarian projects that offset carbon generation. Whether driving to work, taking a flight, or buying a coffee, every action we take generates some quantifiable amount of carbon. So, why aren’t people offsetting every purchase they make? That would solve climate change overnight.
Because people can’t access the carbon credits they want and need.
The voluntary carbon credit market is young and illiquid. You need around $50,000 to purchase a bundle of carbon credits. This price point locks out the supermajority of potential buyers. Why don’t companies buy them and sell them to their customers? They do! But only in quantities that make economic sense for the company. Remember, companies are in it for the money — they don’t want a bunch of illiquid assets on the books and need to sell these things as quickly as possible.
Awareness is another factor. Most people don’t know that carbon offsets are even an option. (Shout out to our friends at Klima for making some noise about this issue!) Most companies don’t extend the option to offset a purchase to their consumers. That’s why most people who would pay an extra $0.02 to offset their coffee don’t — they lack the option entirely!