S2G Ventures Publishes Analysis of Today's Carbon Market Landscape and Actionable Solutions to Unlock Further Potential

CHICAGO, Nov. 16, 2023 /PRNewswire/ -- S2G Ventures ("S2G"), the direct investment team of Builders Vision, has published a new report – Carbon Markets: Trends, Trials and Turning Points. The report provides an assessment of today's carbon market landscape, highlighting critical challenges for the future and providing a framework for further engagement.

Over the past decade, there has been a surge in interest and discussion surrounding carbon markets, indicating strong potential for a global, efficient market for carbon and emissions. However, while the public and private sectors have continued to establish emissions reduction standards and advance voluntary carbon market (VCM) efforts, scrutiny of carbon market practices and related climate impact has intensified.

"While there has been notable progress with carbon markets, further development and maturation requires new solutions to address existing pain points," said Cristina Rohr, managing director at S2G Ventures. "Those who successfully navigate and de-risk current uncertainties have the potential to generate both outsized return and positive impact on climate outcomes."

Further development of the carbon market depends on effectively addressing three key challenges at the forefront of scalability: transparency, standardization and incentives.

• Transparency – through the prioritization of data availability, viability and education – is critical to building market confidence. There is a crucial need for on-the-ground support and technology to enable buyers to accurately verify projects from inception through ongoing operations, with minimal margin of error. By measuring the precise impact of projects through dedicated data collection efforts and engaging directly with operators, disclosures to key stakeholders, including customers, consumers, investors and government agencies, will be enhanced.
• Developing a more robust and cohesive set of standards will streamline project delivery. Standards continue to be developed based on several factors such as geography, project type, end market and more. There is an opportunity to combine efforts or align existing standards under overarching market principles. Standard bodies and initiatives should consider a broad range of perspectives, including those collecting, validating and interpreting on-the-ground data and leading voluntary buyers.
• Addressing misaligned market incentives will accelerate the speed of market partnership and the development of carbon projects. To strengthen the carbon market, there must be an increase in profit potential and reduction in risk for everyone involved, across the entire value chain. By creating stronger incentives, there will be more involvement, partnership and carbon project development.

"Looking at today's carbon markets landscape, we are at a turning point in addressing existing challenges around transparency, standardization and incentives with actionable solutions," said Mike Wise, vice president at S2G Ventures. "By increasing our collaboration and focus on alleviating current frictions, we have an opportunity to unlock the full potential of transparent, consistent, and high-quality carbon markets."

To read the full report, please download here.

About S2G Ventures:

S2G Ventures, the direct investment team of Builders Vision, partners with entrepreneurs who are working on solutions to some of the world's greatest challenges across the food, agriculture, oceans, and clean energy markets. We provide capital, mentorship, and value-added resources to companies pursuing innovative market-based solutions that generate positive social, environmental, and financial returns. S2G provides our partners with flexible capital solutions that can range from seed and venture funding through growth equity to debt and infrastructure financing. For more information about S2G, visit s2gventures.com or connect with us on LinkedIn.

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SOURCE S2G Ventures