What is Climate Vault?
Climate Vault is a Delaware registered non profit non stock organization whose mission is to significantly reduce CO2, one of the leading causes of climate change, while supporting the innovation in carbon removal technologies designed to eliminate historical CO2.
How is Climate Vault’s approach effective?
We work with organizations and individuals to reduce and eliminate their carbon footprint. We do this by using regulated compliance markets to purchase and vault CO2 permits, so major emitters like utilities and power plants cannot use them. Because the number of permits is capped, keeping them off the market decreases CO2 emissions and provides a verifiable offset. We go further than just offsets, though. Through our Tech Chamber’s research, Climate Vault will help sustain the world’s first ecosystem for carbon dioxide removal (CDR) technologies by identifying efficacious innovations and providing grants to help make them viable and cost-effective.
How does Climate Vault differ from traditional offsets?
Traditional voluntary offsets such as forestry, methane capture, and clean cookstove projects, have long struggled with issues of credibility, stemming from a frequent lack of additionality, measurability, and inconsistent 3rd party verification. That’s where Climate Vault is different. Climate Vault participates in government-regulated compliance or “cap and trade” markets, purchasing and vaulting CO2 permits so that major polluters cannot use them. This market-based approach is easily measurable (1 permit = 1 metric ton), provides price transparency, immediate impact, and verifiability enforced by government regulators, so that Climate Vault supporters can be assured their offsets have a real and measurable impact.
What is a compliance market? How does Climate Vault use them?
A Compliance Market (also known as a cap-and-trade market) is a market created by a government — whether it be a state, like California, or a coalition of governments, like the Regional Greenhouse Gas Initiative — that sets an annual limit, or a cap, on the amount of CO2 that can be emitted within its boundaries. Regulated entities within the market, such as utilities and power plants, are required to hold permits (often referred to as allowances) for every ton of their emissions or face severe financial penalties. Companies that reduce their emissions can trade (sell) their unused permits to other companies within the market that may require more. It’s through this process that Climate Vault participates in the market, purchasing and vaulting these permits, so they cannot be used by polluters.
What does a permit do?
A permit allows the entity possessing it to emit one ton of carbon dioxide (CO2) for every permit they own. These are sold through government regulated compliance markets.
Why use compliance markets?
There are a few benefits to securing permits from these emissions markets. Most importantly, they are government-regulated, so we can verify the amount and magnitude of carbon reductions and know that it’s real. Beyond that, it allows for immediate, measurable, large-scale reductions in critical CO2 emissions, expediting the global ambition to reduce and remove the atmospheric CO2 driving the most dramatic effects of climate change. In the end, these markets create an immediate impact on carbon reduction today, not years or decades down the line.
How does Climate Vault support carbon removal technologies through their approach?
Climate Vault’s Technology Experts Chamber, led by former Energy Secretary Ernest Moniz, is an expert team of scientists, government policy, and academic leaders dedicated to advancing carbon removal technologies. The Technology Chamber’s role is to assess potential innovations, review applications, and evaluate the impact of carbon removal technologies for Climate Vault to support.
Why is carbon removal important?
Economists and climate scientists agree that due to the current levels of carbon in the atmosphere and the continued global emissions, a critical part of any strategy for confronting the climate challenge is to remove carbon from the air that has already been released.