Climate research project

This specific research task will look at the “Environment” aspect of ESG with a specific focus on carbon offsetting and how we can help businesses access the market. Following this, we hope to use the output of this research to define our strategy based on the opportunities we can identify in the carbon offsetting space.
There are three focal points to inform the research:
• marketplace accessibility from a buyer perspective;
• offsetting procurement drivers and buyer profile; and
• existing barriers to entry and digitally enabled opportunities to overcome them.

The research report should be compiled by using articles, scientific & business journals as well as a review of the key businesses and start-up operating in the ecosystem.

Some key questions

1.0 Overview
Provide an overview of the carbon offsetting space

Access
• What are the main problems being solved, who is most affected by them and what marketplace solutions currently exist in this area and what is their business model?
• How the market is currently accessed by both buyers and suppliers and the ways current practices might hinder access
• Provide an overview of the average transaction size, carbon credit price, range of carbon credits available (i.e. diversity of project types) and maybe even the impact offsetting strategies might have on the way carbon credits are procured and buyers access the market

Scale
• Elaborate on the roles businesses/start-ups play in addressing existing issues and supporting the marketplace scale

2.0 Market
• What marketplace start-ups are operating in this space? Are they emergent and innovative or is the competitive landscape becoming mainstream with many competitors?
• How can the market be structured and mapped? (instrument / market reference data provision, organised trading platforms, pre/post trade transparency, supplier KYC etc.)
• Where is investment going in this space (geography, by technology type, etc)? What are the individuals or institutions or entities who are investing in some of the most innovative solutions?

3.0 Challenges
We have identified a few challenges in the accessing and scaling the space but would love to explore them further.

3.1 Supply and Demand
Carbon credits are viewed by some as the last resort - companies should be able to evidence what they have done in order to reduce or remove carbon before they turn to offsetting.
• How do we segment different types of carbon credit demands?

3.2 Transparency issues
Voluntary carbon markets are opaque, and the process is old fashioned - brokers with little real time data on carbon credit projects and no transparency.
• What is being done in the market to enhance transparency in carbon markets and encourage more market access?

4.0 Role of platforms and marketplaces
• What can be done by platforms and marketplaces to help businesses access the market?