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illuminem summarizes for you the essential news of the day. Read the full piece on WSJ or enjoy below:
🗞️ Driving the news: The carbon-removal market is dominated by Microsoft, which has made over two-thirds of all purchases to date
• While this investment has helped launch several startups, it poses a challenge as the market's growth relies heavily on a single buyer
• To diversify, companies like CUR8 and Patch are helping smaller firms engage with carbon-removal projects
🔭 The context: Carbon-removal credits, which extract CO2 from the atmosphere, are seen as higher quality than avoidance credits but are significantly more expensive. As the market matures, it's expected that costs will decrease through economies of scale. Other major players like Frontier and Stripe are also entering the market, signaling potential for broader participation
🌍 Why it matters for the planet: Expanding the market for high-quality carbon-removal projects is crucial for achieving net-zero goals, particularly in addressing scope 3 emissions. However, over-reliance on a few large buyers could hinder long-term market development and innovation
⏭️ What's next: The industry needs more companies to invest in carbon-removal projects to ensure its sustainability. As costs decrease and more buyers enter the market, it could lead to a more diversified and robust industry
💬 One quote: "Signing these deals gets economies of scale, developers are going to gain skills and bring down the cost over time." — Kyle Harrison, Head of Sustainability Research, BloombergNEF
📈 One stat: Microsoft has committed to purchasing at least 8 million tons of carbon dioxide removal worldwide, making up over two-thirds of all purchases to date
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