The carbon removal market could reach $400 billion to $1.6 trillion by 2050, according to McKinsey. But it’s got a long way to go. Right now the market is wild, unexplored territory filled with unproven technologies, murky cost curves, and a motley mix of price points and standards. The hope is that one day it becomes a standardized commodity market of high-quality, durable removals. 
But for now, brave buyers have to wade into the wilds and see what works. So what does that look like – and what have they learned so far? 
In this episode, Shayle talks to Stacy Kauk, head of sustainability at Shopify, which paid $55 million for 85,000 tons of removal in 2023. Kauk says that very few of those credits have been delivered yet, but the company, along with a few other early entrants like Stripe, H&#038;M, and Microsoft, are investing in a varied field of technologies to develop the market. 
Stacy thinks of Shopify’s approach like a venture capitalist’s portfolio, with some companies succeeding and others failing. Stacy and Shayle walk through the practical realities of building that portfolio, covering topics like:
Using forward purchases, flexible contracts, and Shopify’s internal credit standards
The challenges that slow down ambitious startups, like permitting delays and the complicated work of measuring, reporting, and verifying credits
Which technologies are hot and which are not, ranging from biomass burial and wastewater treatment to enhanced weathering and ocean alkalinity enhancement
Comparing the lower energy requirements of enhancing natural systems with the potentially clearer cost curves of engineered systems
Building a diverse portfolio across technologies and maturities
What determines the prices Shopify pays for different credits
Recommended Resources: 
Bloomberg: Stripe, Alphabet and Others to Spend Nearly $1 Billion on Carbon Removal 
Carbon Dioxide Removal Primer 
Latitude: Fixing the messy voluntary carbon markets
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Shayle Kann

The challenges of building a carbon removal portfolio

The carbon removal market could reach $400 billion to $1.6 trillion by 2050, according to McKinsey. But it’s got a long way to go. Right now the market is wild, unexplored territory filled with unproven technologies, murky cost curves, and a motley mix of price points and standards. The hope is that one day it [&hellip;]