The CarbonClear team, consisting of technical and commercial experts, develops project pipelines of carbon credit projects based on existing and emerging technology streams. This facilitates pre-purchase and offtake agreements with buyers who wish to drive a tangible climate impact by simultaneously; offsetting their CO₂ footprint, enabling important social co-benefits in recipient communities, and helping mature the underlying technologies required for further scaling this new model.

 

If these carbon credits are based on technologies closer to maturity, commitments are primarily shaped as offtake agreements, i.e., guaranteed purchase of the carbon credits at a fixed price after generation. The guarantee can then be used by the project developer, if required, to secure additional third-party funding to ensure delivery on the agreement. On the other hand, if the carbon credits are based on technologies that are farther from maturity, the main vehicle will be low-volume pre-purchases. The buyer then has less certainty on the delivery of the credits, but becomes an early-stage financier of the emerging technology stream, and a firm supporter of the scaling the transformative CarbonClear model.

 

More mature technologies will have lower guaranteed prices than offsets based on upcoming technologies. The premium for carbon credits based on immature technologies reflects the additional cost of producing market-ready carbon credits; the price of innovative hardware has not decreased by scale nor has carbon methodology work been covered by high sales volumes, for example.

 

The AMC is structured around bespoke agreements between buyers and CarbonClear, in which the boundaries of agreement are outlined. The aggregation of specific buyer commitments adds up to a pool of funding that is sufficient to kick start the scaling of immature technologies, whilst rapidly providing market-ready carbon credits based on proven technologies. Ultimately, this will contribute to closing the 0.5-1 gigaton gap between expected supply and demand of carbon credits by 2030 and contribute to the acceleration of an expanding market.

 

If you want to hear more about CarbonClear's AMC, or need more information, please get in touch via the form below: