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.
Many economic sectors and regions have only minimal access to the climate markets, which undermines their path to decarbonisation.
The climate markets are a complex network of actors: environmentalists, technology companies, capitalists, institutions, and nations.
Lack of trust & transparency creates market structures that limit liquidity, marketability, and assurance of contract completion.
Large number of actors involved in the climate market (banks, auditors, brokers, regulators, etc.) produces unnecessarily high transaction costs.
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.