企業(yè)碳信用使用指南 How-to guide for voluntary carbon credit portfolio design 2024

How-toguidefor

voluntarycarbon

creditportfoliodesign

worldBusiness

council

forsustainableDevelopment

Contents

01.02.

Executive

summary05

Theroleofvoluntarycarboncredits

inreachingglobalnet-zero

emissions09

03.04.

Aportfolioapproach

toprocuringvoluntary

carboncredits13

Conclusion34

How-toguideforvoluntarycarboncreditportfoliodesign2

Glossary,acronymsandabbreviations

Glossary

abatement

Measuresthatcompaniestaketoprevent,reduceoreliminatesourcesofgreenhousegas(GHG)

emissionsintheirvaluechain.Examplesincludereducingenergyuse,switchingtorenewable

energyandreducingchemicalfertilizeruse.

beyondvaluechainmitigation

Mitigationactionorinvestmentsthatfalloutsideacompany’svaluechain,includingactivitiesthatavoidorreduceGHGemissionsorremoveand

storeGHGsfromtheatmosphere.

carboncredit

Atradableunitissuedbyacarboncreditingprogram/standardthatrepresentsaverified

reductionorremovalofGHGsfromthe

atmosphereequivalenttoonemetrictonofCO2-equivalent.Carboncreditsareuniquelyserialized,issued,trackedandcanceledorretiredbymeansofanelectronicregistry.

carbondioxideremoval(CDR)

AnthropogenicactivitiesthatremoveCO2from

theatmosphereanddurablystoreitingeological,terrestrialoroceanreservoirsorproducts.

historicalemissions

Theestimatedemissions,inclusiveofallscopes,ofafirmsinceitsfounding.

insetting

Astrategyusedtodescribeclimatemitigation

projectsorprogramswhollycontainedwithinthescope3valuechainboundaryofacompanyorprojectspartiallywithinitsscope3supplychainboundary(spanningitssupplychainandother

companies’supplychains).

naturalclimatesolutions(NCS)

Nature-basedsolutions(NbS)thataddressclimatechange.

nature-basedsolutions(NbS)

Actionstoprotect,sustainablymanageand

restorenaturalandmodifiedecosystemsinwaysthataddresssocietalchallengeseffectivelyandadaptively,toprovidebothhumanwell-beingandbiodiversitybenefits.1

net-zeroemissions

EmissionsachievedwhenanthropogenicGHG

emissionsintheatmospherebalancegloballywithanthropogenicremovalsoveraspecifiedperiod.

Companiessetnet-zeroemissionstargetstoachievenet-zeroemissions.

neutralization

Measurescompaniestaketoremovecarbon

fromtheatmosphereandpermanentlystoreit

tocounterbalancetheimpactofemissionsthat

remainunabatedatandaftertheScienceBasedTargetsinitiative(SBTi)-alignednet-zeroemissionstargetdate.Companiescanimplementcarbon

removalswithinorbeyondthevaluechaintoneutralizeresidualemissions.

remainingemissions

Emissionsthatremaininagivenyearasa

companyprogressestowardsthedeliveryofitsnear-andlong-termtargets.

residualemissions

Emissionsthatarenotpossibletocompletely

eliminatedespiteimplementingallavailable

mitigationmeasurescontemplatedinpathways

thatlimitwarmingto1.5°Cwithnoorlimited

overshoot.Inthecontextofscience-basedtargets,residualemissionsrefertothecompany’sscope1,scope2andscope3emissionsthatremainonce

ithasachieveditslong-termemissionsreductiontarget.

technology-basedsolutions(TbS)

Actionsthatdeploytechnologytoreduceoravoidemissionsortoremovecarbon.

How-toguideforvoluntarycarboncreditportfoliodesign3

Glossary,acronymsandabbreviations

continued

Acronymsandabbreviations

ARR

Afforestation,ReforestationandRevegetation

BECCS

BioenergywithCarbonCaptureandStorage

CCP

CoreCarbonPrinciples

CCS

CarbonCaptureandStorage

CDR

CarbonDioxideRemoval

CO2

Carbondioxide

CO2e

Carbondioxideequivalent

DACC

Directaircarboncapture

DACCS

Directaircarboncaptureandstorage

ETS

EmissionsTradingScheme

GHG

GreenhouseGas

Gt

Gigaton

ICVCM

IntegrityCouncilfortheVoluntaryCarbonMarket

IPCC

IntergovernmentalPanelonClimateChange

NbS

Nature-basedSolutions

NCS

NaturalClimateSolutions

REDD+

Reducingemissionsfromdeforestationandforestdegradation,plusthesustainablemanagementofforests

SBTi

ScienceBasedTargetsinitiative

SDG

SustainableDevelopmentGoal

TbS

Technology-basedSolutions

VCM

VoluntaryCarbonMarket

VCMI

VoluntaryCarbonCarketsIntegrityInitiative

WBCSD

WorldBusinessCouncilforSustainableDevelopment

How-toguideforvoluntarycarboncreditportfoliodesign4

Executive

Summary

01.

How-toguideforvoluntarycarboncreditportfoliodesign5

01.Executivesummary

Ifwearetorestrictglobalwarmingtonomorethan1.5°C(2.7°F),asoutlinedbytheParis

Agreement,emissionsmustbereducedby45%by2030,andcountriesandcorporationsmustpledgetoreachnetzeroby2050.Toachieveglobal

targetsforcarbonsequestrationandmitigation,companiesshould,firstandforemost,rapidly

anddeeplyreducetheirgreenhousegas(GHG)emissionsacrossscopes1,2and3.

Tosuccessfullymeetglobalclimateactiongoals,companiesshouldalsocommittoextensive,

ongoinginvestmentincarbonoffsetsolutions

andtechnologies:TheWorldResourcesInstitute

hasestimatedthattheprivatesectorwillneedtoannuallyallocateUSD$2.2trillion2toachieve2030benchmarks.

Ascompaniesseektodeterminehowand

wherebesttoinvestfundsinsupportoftheir

decarbonizationagendas,theyshouldlookfirstatthevoluntarycarbonmarket(VCM).The

procurable,high-integrity,voluntarycarbon

creditsoftheVCMoffervetted,high-return

opportunitiestochannelcriticalfinancingto

carbonreductionactivities—leadingtopositiveenvironmentalimpactsfarbeyondabusiness’

valuechains.

Further,thesecreditsofferanessential

complementtocompanies’effortstoabatescope1,2and3emissions,bothduringthe

transitionperiodandastoolstoaddressremainingemissionsortoachievenetzerostate.

NavigatingtheVCM

Itsmeritsaside,theVCMcanfeeldauntingto

navigate,anddecidingtoparticipateintheVCMtooffsetcarbonemissionsisjustthefirststep.

CompaniesmustthenconsiderothercriticalstepstoVCMnavigation,includingselectingbestfits

fromanarrayofavailablecredittypes,suchasavoidanceand/orremovalcreditsandnature-basedand/ortechnology-basedcredits.

Allthismustoccuralongsideacrashcourseinthecomplexwebofpoliciesandstandards—think

BeyondValueChainMitigation(BVCM),VoluntaryCarbonMarketsIntegrity(VCMI)Initiative

claimstiers,ScienceBasedTargetsinitiative

(SBTi)guidelinesandmore—thatoverseeVCMoperations.

EvenchoosingthetypesandamountsofVCMcreditstoprocurerequireslayersof

considerations,eachweighingacompany’slong-termenvironmentalgoalsandmarketprojectionsagainstpotentialshort-termreputationalor

operationalexpensesandrisks.

ByadoptingaportfolioapproachtotheVCM,

companiescanpursuetheirclimateleadership

goals,whilemitigatingtherisksinherentinthenewtechnologiesdrivingdecarbonization.Aportfolio

approachhelpscompaniesmaketimelyand

informeddecarbonizationdecisionsregardingtheoptimaltypesandquantitiesofcreditstoprocuretoday,whileensuringtheyachieveappropriate

footholdsinemergingornascenttechnology-

basedremovalsthatwillcontinuetoscaleastheVCMgrowstomeetglobalclimategoals.

TheMeritsofaVCMPortfolio

AportfolioapproachtotheVCMallowscompanies

tomeetabroadrangeofcorporateand

operationalobjectivesthroughtheprocurementofhigh-integritycreditsselectedacrossarangeofsolutiontypes,geographiesanddevelopers/partners.

Specifically,VCMportfoliosnotonlyaddress

companies’immediateandlong-termcarbon

mitigationandremovalneeds,theyalsosupportcorporateeffortstomanagecosts,securefuturesupplies,maximizeco-benefitsandmitigate

operationalrisks.

Portfoliosalsoallowcompaniestoadeptlyaddressdiversestakeholderexpectationswhilepreservingusecaseoptionalityintheformofcreditsfor

voluntaryclaimsorforcompliancemarkets.

How-toguideforvoluntarycarboncreditportfoliodesign6

Executivesummary

continued

CarefullydevelopedVCMportfoliosallow

companiestoblendthebenefitsofnature-basedsolutions(NbS),alsoknownasnaturalclimate

solutions(NCS),andtechnology-basedsolutions(TbS).Moreover,diversifiedVCMportfoliosenablecompaniesto:

1

Managecostallocation:Allocatingfunds

tonascentandhigh-costTbSremoval

typeshelpsbuildthemarketforfuture

2

highvolumeswhileinvestinginimmediatemitigationthroughNCS.

SecureTbSsupply:IncludingaproportionofTbSremovalsearlyandincreasingthemovertimewillhelpcompaniessecurethecarbonremovalsrequiredtomeettheir

3

2050netzerogoals.

Maximizeanddiversifyingco-benefits:Balancinginvestmentswithdifferentco-benefits

maximizescompanies’returnoninvestment.Forexample,NCSprojectsgenerate

numerouspositiveco-benefitsincluding

biodiversityandhabitatprotectionandsoil,airandwaterqualityenhancements.TbS

projects,meanwhile,maypositivelyimpactindustrialdevelopmentandlivelihood

4

improvements.

5

Identifybusinessopportunities:Engagingininvestmentsandpartnershipstodevelopnewtechnologiesforcarboncreditscanopennewbusinessopportunities.

Mitigaterisks:Diversifyingacrossvariousprojects,projecttypes,developersandgeographiesmitigatesproject-and

technology-specificrisks,includingreversal,technologyfailure,projectdeveloper

6

managementchallengesordeliveryissues.

Enhancereputation:Companiescanenhancetheirreputationalstancebyshowing

commitmenttoclimateoutcomesthroughbalancedcarboncreditprocurementin

alignmentwithstatedcompanyvaluesandsustainabilityobjectives.

PrioritizingaBalancedPortfolio

VCMportfoliosenablebusinessestobuildabalancedcarboncreditstrategy—one

thatleveragesthepowerofbothnatureand

technology.InvestinginbothexistingNCScreditopportunitiesandemergingTbStechnologieswillbecrucialascompaniesprogresstowardstheirnetzerotargets.

Infact,thetwotypesofcreditsvitallycomplementoneanother,eachextendingtheother’sreach.

Naturalclimatesolutions(NCS)canprovide

over30%ofthecost-effectivecarbondioxide

(CO2)mitigationneededthrough2030.3,4

Meanwhile,technology-basedsolutionsfocusedonCO2removaltechnologieswillopenthe

doortomorepermanentsolutionscertaintobecriticalifcorporationsaretoachievelong-termneutralizationofresidualcarbonemissions.

Byleveragingabalancedportfolioapproach

tocarboncreditprocurement,businessescan

effectivelycontributetoglobalclimategoalsinatwo-tieredway.First,theirprocuredNCScreditssupportimmediatedecarbonizationefforts

throughground-leveleffortstoaidreforestationortopreventfurtherdeforestation,forexample.

Meanwhile,companies’stagedprocurement

ofTbSremovalcreditssupportmorelong-termorpermanentcarbonmitigationsolutions,

whilesimultaneouslypromotingamarketplaceforfurtherdevelopmentofthesenascent

technologies.

Blendedportfoliossendclearsignalstothe

marketplacethatcarbonsequestrationand

removaleffortsarevaluedandin-demand.They

enableearly-stageTbSprojectstoscaleand

increasetheirbankabilitybysupportinginnovationandR&Dtodrivedownremovalcredits’future

marketcosts—acriticalstepforcompanies’long-termnetzerogoals.

How-toguideforvoluntarycarboncreditportfoliodesign7

Executivesummary

continued

UsingThisGuide

Thisguideismeanttohelpbusinesses

navigateVCMobjectiveswhilebalancingkeyconsiderations,suchascredittypes,costsandprojectrisks.

CreatingaVCMportfoliounfoldsintwostages,whicharedescribedindetailinthisreport:

→First,companiesmustconfirmtheroleof

carboncreditsintheirenvironmentalobjectives.Then,theymustdeterminetheoptimalvolumeofcreditstoprocureandtherequirements/

preferencesforcertaincarboncreditsolutiontypes.Well-planned,high-levelportfolioswilllikelyincludebothNCSreductionorremovalcreditsandTbScreditsaimedatreducingoravoidingemissionsorremovingcarbon.

→Second,companiesshouldworktobuilda

detailed,implementation-readycarboncredit

portfolio.Thisstepincludesassessingthetrade-offsofvariousprojecttypesbymeasuringthecertaintyofthecarbonimpact,Sustainable

DevelopmentGoal(SDG)contributions,costsandfeasibility.Theseconsiderationsrequire

in-depth,carefulanalysesonissuesincluding,forexample,thelikelyimpactsofNCSremovalcreditsfocusedonafforestation,reforestationandrevegetation(ARR)andtheidealprojectlocationsforprocurementapproach.

Itisourhopethattheapproachandframeworksoutlinedinthisguidewillhelpaccelerate

companies’investmentinvoluntarycarbon

credits.WebelievetheVCMisanaccessibleandinstrumentaltoolpoisedtoplayacriticalroleinhelpingcompaniesachievetheirmid-centurynetzerotargets.

WBCSDplaysapivotalroleinadvancingtheunderstandingofhowcompaniescantakeactionbeyondtheirvaluechainsthrough

instrumentslikevoluntarycarboncredits.

Thiscontributionincludespublishingreportslike

“TheCaseforBeyondValueChain

Actions”

,whichintroducesthebeyond-

value-chainactionsconceptandoutlines

thereasonscompaniesshouldengagein

theseactionsandinvestments.Additionally,weprovideguidanceoncarbonremovals

through

“RemovingCarbonResponsibly:

AGuideforBusinessonCarbonRemoval

Adoption”

andNCSthroughthe

“Buyer’s

GuidetoNaturalClimateSolutionsCarbon

Credits”

.Furthermore,weactivelyleadthe

NaturalClimateSolutionsAlliance

tofosterthegrowthofNCSmarkets.Despitethesedevelopments,however,muchworkremainsforallkeyactorstoacceleratetheprogressofcarboncreditprocurement.

How-toguideforvoluntarycarboncreditportfoliodesign8

Theroleofvoluntarycarboncreditsin

reachingglobalnet-zeroemissions

02.

How-toguideforvoluntarycarboncreditportfoliodesign9

02.Theroleofvoluntarycarboncredits

inreachingglobalnet-zeroemissions

High-integrityvoluntarycarboncreditsplayan

importantroleinchannelingfinancetoactivitiesthatleadtothereductionofemissionsorthe

removalofgreenhousegases(GHGs)beyondthevaluechainsofbusinesses.Theyareavaluable

complementtoabusiness’effortstoabatescope1,2and3emissions,bothduringthetransition

periodasawaytoaddressremainingemissionsandwhenthenet-zerostateisreachedto

neutralizeresidualemissions(Figure1).

Businessesthatdecidetousevoluntarycarboncreditsinthetransitiontonet-zeroemissions

facethekeydecisionofwhat“type”ofcreditstopurchase(Figure2).The“type”isdefinedbythemitigationactivity,whichcanbe:

→Anactivitythatreducesanthropogenic

emissionsofaGHG.Themitigationactivitycouldbenature-basedortechnology-based.

→Anactivitythatenhancesremovalsbysinks

relativetoGHGemissionsorremovalsintheactivity’sbaselinescenario.Themitigation

activitycouldbenature-basedortechnology-based.

Figure1:Theuseofvoluntarycarboncreditsinthetransitionandatnet-zeroemissions

sions

lemis

>

tCO2e

Business

as

usua

c

S

b

c

n

ie

Unabatedemissions

Invaluechainreductions

ddecarboniz

eatio

s

a

-

e

Emissions

NetZeroemissions

Residualemissions

n

p

h

w

a

y

a

t

>

>

>

Time

>

Beyondvalue

chainmitigationactions

Neutralizationofresidual

Compensationforhistoricalemissions

emissions

Reductionsandremoval

Source:WBCSD,ERMandWorldEconomicForum(2022).NaturalClimateSolutionsandtheVoluntaryCarbonMarket

How-toguideforvoluntarycarboncreditportfoliodesign10

02.Theroleoffinancialvoluntarycarboncreditsinreachingglobalnet-zeroemissions

continued

So,althoughallcarboncreditsrepresentthe

samemitigationoutcomeof1metrictonof

carbondioxideequivalent(CO2e),areduction

creditrepresents1metrictonofCO2eavoided

orreducedthroughmitigationactivities,whilea

removalcreditrepresents1metrictonofCO2e

removedfromtheatmosphereanddurablystoredthroughamitigationactivity.

Emissionsreductionsgeneratedbytechnology-basedsolutions(TbS)includerenewableenergyprojects,energyefficiencyorGHGcapturefromindustrialemissions.Theyarealsoassociated

withnaturalclimatesolutions(NCS)thatprevent

forestdegradationanddeforestationand

improveagricultureandforestmanagement.

Carbondioxideremovals(CDR)areassociatedwithtechnologieslikedirectaircarboncapture(DACC),bioenergywithcarboncaptureand

storage(BECCS)andenhancedweathering.NCSthatremovecarbonincluderestoringdegradedforestsandnaturalhabitatsorimprovingland

management.

Figure2:Solutiontypesgeneratingcarboncredits

Definition

Example

Solutiontype

Carbonreductionandremovalaretwotypesofcarbonmitigation

solutionscomprisingmainly

nature-basedortechnology-basedsolutions

Carbonremoval:

Nature-basedsolutions(NbS)

Carbonremoval:

Tech-basedsolutions(TbS)

Carbonreduction:

Nature-basedsolutions(NbS)

Carbonreduction:

Tech-basedsolutions(TbS)

Projecttype

Undereachsolutiontype,differentmitigationoptions

arecategorizedintokeyoverarchingprojecttypesthroughwhichcarbonisreducedorremoved

Afforestation,reforestationandrevegetation(ARR)

ImprovedrangelandmanagementImprovedforestmanagement

Bluecarbon

Soilcarbon

Enhancedweathering

Biochar

BECCS

DACCS

Reducingemissionsfromdeforestationandforestdegradation(REDD+)

Renewableandbioenergy

Energyefficiency

How-toguideforvoluntarycarboncreditportfoliodesign11

02.Theroleoffinancialvoluntarycarboncreditsinreachingglobalnet-zeroemissions

continued

Thesetwosolutiontypesincludemanyproject

types,ormethods,toreduceemissionsand

removecarbonfromtheatmosphere,fromenergyefficiencytorenewableenergy,electricvehicles,mini-grids,ReducingEmissionsfromDeforestationandForestDegradation,plusthesustainable

managementofforests(REDD+)methods,carboncaptureandstorage(CCS),andmanymore.TheIntegrityCouncilfortheVoluntaryCarbonMarket(ICVCM)hasidentified35categories.5

Recognizingandembracingthedifference

betweenreductionsandremovalsandbetweenNCSandTbSsolutionsiscentralforasuccessfultransitiontoglobalnet-zeroemissionbecause:

→Thereisnonet-zerowithoutnature.Thereis

clearlynoviablepathtoreachingaglobal

temperatureincreaseofonly1.5°CwithoutthemassivedeploymentofNCSastheycanprovideover30%ofthecost-effectivecarbondioxide

(CO2)mitigationneededthrough2030.6Overall,land-basedactivitiesneedtomovefrom

emitting12.5gigatons(Gt)ofGHGeachyear,tobecomenet-zeroemissionsby2030,a5Gtsinkby2040anda10Gtsinkby2050.7

→Net-zeroisnotpossiblewithoutthepermanentremovalofCO2fromtheatmosphere.Estimatesshowthatthecapacitytoremovecarbonfromtheatmospherewithlowreversalriskneedstobeincreased,withanestimated6to10Gtin

annualremovalcapacityneededby2050formostParis-alignednet-zeropathways.8

Todramaticallyscalethecapacityforcarbonremovalswiththelow(est)riskofreversal,itisessentialtochannelasmuchfinanceintotheprocessaspossible.9TocomplementremovalsgeneratedbyNCS,thereisanascentyet

highpotentialmarketforTbSremovals,newtechnologicalinnovationsthatremoveandstorecarbon.

Aportfolioofvoluntarycarboncreditsthat

includesNCSreductionandremovalcreditstoday,combinedwiththestagedprocurementofmore

permanentTbSremovalcredits,supportsboth

theconditionsoutlined.WhiletakingactiontodaythroughNCScredits,thisapproachpromotes

theallocationoffundsforTbScontractsand

purchasinginordertohelpbuildthemarketby

sendingcleardemandsignals.Thiswillenable

early-stageprojectstoscale,increasebankabilityandcatalyzethenecessaryinnovationand

researchanddevelopmenttodrivedownthe

futuremarketcostsofTbSremovalcreditsthatwillbeneededatthenet-zerostate.

How-toguideforvoluntarycarboncreditportfoliodesign12

Aportfolioapproach

toprocuringvoluntary

carboncredits

03.

How-toguideforvoluntarycarboncreditportfoliodesign13

03.Aporfolioapproach

toprocuringvoluntarycarboncredits

Aportfolioapproachfortheuseofvoluntary

carboncreditswillhelpmeetcorporateambitionsandcontributetotheneedtoinvestinthe

protection,improvedmanagementandrestorationofnatureforclimatechangemitigationandthe

needtoscalethepotentialforcarbonremovals

withthelow(est)riskofreversal.Aportfolio

approachseekstobalancetypicalcompany

objectives–managingcosts,maximizingbusinessopportunitiesandco-benefits,minimizingtrade-offs,increasingmarketknowledge,mitigating

project-specificrisk,preservingusecase

optionality(suchasusecreditsforvoluntary

claimsorforcompliancemarkets),addressing

diversestakeholderexpectationsandthetrade-

offsspecifictotheuseofvoluntarycarboncredits–throughtheprocurementofhigh-integritycreditsfromdifferentsolutiontypes,geographiesand

developers/partners.

1

Managecostsofachievinganet-zeroemissionsportfolio

Duringthetransitiontonet-zeroemissionscompanieswilldesignavoluntarycarbonmarket(VCM)portfoliowithaunique

allocationtovariouscredittypesandwithawiderangeincosts.Forexample,TbS

reductioncreditsaretypicallythelowestcostoption(belowUSD$5permetricton),whereasTbSremovalcreditshaveawiderangeofcostsandcanexceedUSD$1,000permetricton.

Companiesneedtomanagethesecosts

whilemaximizingthedesiredimpacts

(climate,innovation,biodiversity,equity,

etc.)oftheirhigh-integrityVCMportfolio.

Atthesametime,ascompaniesdesigna

VCMportfolioalignedwiththeirpathway

toanet-zerotargetdate,ashiftovertimetoremovalsonly–andincreasinglytothelowestriskofreversalTbSremovals–is

necessary.Assuch,companiesshould

allocatesomefundstothesenascentandhigh-costTbSremovaltypestohelpbuild

themarketforwhenhighvolumesare

needed.Thescopeforcostandmarket

pricereductionsfromtheseTbSremoval

creditsissignificant.Asanexample,the

end-to-endcostofDACCtodaycanvary

betweenUSD$600andUSD$1,000per

metricton.Toeasethewideradoptionof

DACC,thiscostneedstofalltobelowUSD$200permetricton,drivenbytechnical

innovations,infrastructuredevelopment

andaccesstolow-cost,low-carbonenergy.

TheaveragepriceforTbSremovalswith

lowreversalrisksisUSD$350permetric

ton.Companies’abilitytocontributeto

thereductionofthismarketpricebyearlyinvestmentwouldinturnunlocksignificantadditionaldemandfromthewidermarket(Figure3).10

Figure3:Priceofcarboncredits11andmarketsize12

Source:Mistry,K.etal.(2023).

ClimateNeedsandMarketDemandDriveFutureforDurableCDR

.BCG

How-toguideforvoluntarycarboncreditportfoliodesign14

2.

3.

4.

5.

6.

03.Aportfolioapproach

toprocuringvoluntarycarboncredits

2

3

Achievesecurityofsupplyofremovalsforneutralization

Acompany’sVCMportfolioallocation

strategywilladjustovertimeandwillneedtoconsistexclusivelyofremovalcreditsatnet-zeroemissions.Companies’portfoliosthatincludeaproportionofTbSremovals

earlyintheprocessandincreasethe

proportionovertimewillhelpthemdeveloptherelationshipsandcontractsneeded

tosecureaccesstotheremovalsthey

needbymid-century.Predictionsshowthesuppliesonthemarketwillbesignificantlyconstrained.Therefore,alackofaccesstotheremovalscompaniesneedfornet-zeroemissionsisasignificantbusinessriskthattheycanmitigatethroughthisportfolio

approach.Aportfolioapproachthat

promotestheallocationoffundstoday(forcontractsandpurchasing)willtherefore

helpbuildthemarketbysendingclear

demandsignalsthatenabletheseearly-stageprojectstoscaleduetoincreasedbankability.Theywillalsocatalyzethe

necessaryinnovationandresearchanddevelopmenttodrivedownthefuturemarketcostsofTbSremovalcredit