This short talk highlights a structural problem in the traditional carbon market, where the infrequent but large purchases from corporate end-users of carbon credits leads to very “chunky” demand. In turn, holders of carbon credits become very defensive about their inventory and price data, leading to opacity, fragmentation and lack of liquidity.
To address this issue, I highlight novel demand sources being developed by KlimaDAO, from automated retirements on DeFi applications like Sushi to compensating for emissions from live events, or even integrating carbon credits into social media applications.
At the event, this talk was the seed for a breakout session, where I moderated a lively discussion about potential demand sources that could address the chunky demand problem. One of the most interesting ideas to come out of that discussion was to offer carbon credit retirement as an optional benefit to employees via a payroll provider like TriNet or ADP - and now I’m trying to develop a partnership with a small crypto-forward payroll provider to try something like that out!