# Problem The climate markets suffer from poor transparency and unreliability. Individuals and businesses are often sold carbon offsets from trees that haven’t been planted and turbines that haven’t been built, whilst the double-counting of offsets is not uncommon. The ultra-high friction market, transactional uniqueness, low transaction confidence and general fragmentation of project financing combined with significant regulatory constraints has led to a toxic market failure that is easily ignored as it does not cause immediate economic shock. Project Developers are forced to sell their credits at a significant discount, and it often takes years for projects to get approved, **there is a supply and demand imbalance.** #### The current climate market fails to meet the needs of the environment, buyers and sellers. ### 👀 The Problems at a Glance #### Inaccessibility Many economic sectors and regions have only minimal access to the climate markets, which undermines their path to decarbonisation. #### Fragmentation The climate markets are a complex network of actors: environmentalists, technology companies, capitalists, institutions, and nations. #### Lack of Trust Lack of trust & transparency creates market structures that limit liquidity, marketability, and assurance of contract completion. #### Over-intermediation Large number of actors involved in the climate market (banks, auditors, brokers, regulators, etc.) produces unnecessarily high transaction costs. #### Verification Buyers are often sold offsets from trees that haven’t been planted and turbines that haven’t been built, whilst the doublecounting of offsets is not uncommon. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.changeblock.com/changeblock-documentation/background/problem.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.