Full Title: Carbon Dioxide Removal (CDR) is Necessary to Achieve Any Corporate Net Zero Commitment
Author(s): Steve Vargas and Michele Holtkamp
Publication Date: August 20, 2023
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CDR refers to anthropogenic activities that remove CO2 from the atmosphere and store it durably in geological, terrestrial, or ocean reservoirs, or in products, according to the Intergovernmental Panel on Climate Change (IPCC). As of June 2023, more than 5,000 companies—representing nearly one-third of global market cap—have committed to reducing their emissions.
As more companies establish decarbonization and net zero strategies, carbon removal credits will need to scale considerably given current supply shortages. However, the voluntary carbon market faces several barriers to scale. Further complications arise when considering the variety of carbon credit types which vary in quality, permanence, additionality, measurability, and price.
To keep a finger on the pulse of carbon credit purchase decisions, the Nasdaq ESG Advisory team surveyed environmental, social, and governance (ESG) an sustainability professionals, among others, around the globe. This report addresses survey findings, including the key characteristics that influence corporate purchase decisions, with a specific focus on carbon removal. However, the Nasdaq ESG Advisory team also acknowledges an extensive body of pre-existing research and insights that can serve as a valuable knowledge base to complement its survey insights. The following context on the global carbon budget, voluntary carbon market (VCM), and private sector initiatives are intended to be informational.