House of [Recycled] Cards: An Overview of the Precarious Carbon Offset Market

Source: Bloomberg “Carbon Offset Trading Is Taking Off Before Any Rules Are Set”
Source: Bloomberg “These Trees Are Not What They Seem: How the Nature Conservancy became a dealer of meaningless carbon offsets”
  • EU Emissions Trading System (ETS)
  • CME CBL Global Emissions Offset (GEO)
  • California Carbon Allowance (CCA)
  • Regional Greenhouse Gas Initiative (RGGI)
  • Private contracts with Projects, Conservancies, Issuers, Brokers
  • Pachama: IoT, Satellite, machine vision driven validation system for growers + accessible marketplace platform for organizational consumers
  • Verra: Modern registry and auditor for numerous standards
  • Nori: peer-to-peer decentralized marketplace with audited Nori Carbon Removal Tonnes (NRTs using blockchain) available to any retail investor.
  • KlimaDAO: newly launched crypto-native solution structured around Tokenised Carbon Tonnes (TCTs), a blockchain accounting of externally audited verified carbon units that backs the KLIMA currency.
  • REDD+ Results Units (RRUs)
  • Gold Standard Certified/Verified Emission Reductions (CERs for Compliance, VERs for Voluntary)
  • Verra Verified Carbon Unit (VCU)
  • Nori Carbon Removal Tons (NRTs)
  • KlimaDao Base Carbon Tonnes (BCTs)
  • Generic “Ton of CO2 (or Equivalent) Removed” or tCO2e
Yardstick automated soil carbon measurement solution. Source
Source: Author’s certificate
  1. Additionality, meaning the project would not have happened without the offset program payments.
  2. Permanence, meaning the offset project is likely to reduce emissions, or store carbon in soil/trees, for a long period of time.
  3. No double counting, meaning the entity represented by an offset is only counted once
  4. No leakage, meaning avoided deforestation in one area doesn’t lead to higher rates elsewhere
  5. No additional social and environmental harm, meaning offset projects do not jeopardize indigenous livelihoods or local cultures/traditions



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