18th Jun 2024 Gemini 1.5 Pro
Paul Gambill, co-founder of the carbon removal marketplace Nori, argues that the prevailing focus on "net zero" emissions targets is hindering the fight against climate change. He believes that the pursuit of precisely calculating and offsetting emissions, often driven by a fear of future regulations or negative press, is slowing down the adoption of effective carbon removal solutions.
While acknowledging the importance of setting ambitious goals, Gambill criticizes the emphasis on long-term targets like 2040 or 2050. He points out that these deadlines may not hold individuals or companies accountable, as personnel and priorities can shift over time. This focus on distant targets, coupled with anxieties about regulatory changes and reputational damage, creates a paralyzing effect on the market.
"Net zero, when I sort of summarize all this into what is the problem with net zero, the problem is that we are letting perfect be the enemy of good. And we're forgetting, we're not like zooming out and looking at it from like a broader perspective."
Gambill advocates for a shift in mindset, urging a focus on immediate action and maximizing the rate of carbon removal through all available means. He highlights the urgent need to protect vital ecosystems like the Amazon rainforest, emphasizing the irreplaceable complexity and ecological value they hold. He stresses that delaying action on carbon removal is akin to compounding the problem, as carbon sequestered today is more valuable than carbon sequestered in the future.
Gambill envisions a world where farmers are financially incentivized to adopt regenerative agriculture practices that sequester carbon in soil. He argues that this approach can benefit both the environment and the farmer's bottom line. By offering payments for verified carbon sequestration, Nori aims to encourage farmers to transition away from conventional practices that contribute to topsoil loss and greenhouse gas emissions.
"The reality is like, I mean we're not gonna just reforest our way out of this like we need to sequester carbon into soils. Yes and that is a very enormous problem and it's squarely what you're working on. But but it's also like the the people who are cutting down native vegetation they're not necessarily doing it out of like malice and it's certainly not like a like Monopoly Man evil like capitalist behind that."
While Nori currently focuses on working with farmers in the United States, Gambill emphasizes the importance of expanding this model globally, particularly to regions with vulnerable ecosystems and communities dependent on agriculture for their livelihoods. He believes that a global carbon removal marketplace can incentivize sustainable land management practices and generate life-changing income for farmers worldwide.
Gambill criticizes the current carbon offset market, particularly the practice of repeatedly trading carbon credits. He argues that this system prioritizes financial speculation over actual carbon removal, enriching intermediaries while diluting the incentive for real-world climate action.
He traces the origins of this system back to the Kyoto Protocol and the emergence of offset registries like Verra. While acknowledging the role of brokers in connecting buyers and sellers, he cautions against excessive financialization that detaches carbon credits from their intended purpose.
"And it's totally inefficient. It's bleeding out money. I believe very strongly that every new dollar spent on carbon removal should result in net new carbon coming out of the air. And so when we started Nori from the day one, we decided we were not going to facilitate the trading of carbon."
To address these issues, Nori utilizes blockchain technology to create a transparent and tamper-proof ledger for carbon credits. When a buyer purchases a carbon credit on Nori, it is immediately retired and recorded as a non-transferable NFT (non-fungible token) on the blockchain. This ensures that each dollar spent directly contributes to carbon removal, preventing the speculative trading that plagues traditional carbon markets.
Gambill believes that blockchain technology, particularly Ethereum, has the potential to revolutionize the financial system and empower individuals. He highlights the speed, transparency, and censorship resistance of blockchain-based transactions, arguing that these characteristics make it an ideal platform for a global carbon removal marketplace.
"Have you ever tried to send money across borders? It's really freaking hard and it takes a long time. You're not sure that it's even going to get there until it does. Have you tried sending stable coins to someone in some other location in the world? It settles in 15 seconds. It's a lot easier and it's a lot clearer."
However, Gambill expresses frustration with the current regulatory environment in the United States, which he believes is stifling innovation in the Web3 space. He criticizes the politicization of cryptocurrency and the SEC's unclear stance on its regulation, arguing that this uncertainty is driving founders and investors away from the country. He calls for clear and consistent regulations that foster innovation while protecting consumers.
Nori is actively exploring new approaches to carbon removal, including a "blended ton" product that combines soil carbon sequestration with future deliveries of carbon removal from technologies like direct air capture (DAC). This innovative approach aims to address the demand for permanent carbon storage while leveraging the immediate scalability of nature-based solutions.
"What we are looking at now, especially as companies are trying to make net zero claims and commitments, when they're doing so, they are pre-purchasing permanent, let's just use direct air capture as an example. They're pre-purchasing DAC carbon removals that are going to be delivered in like five plus years time."
Gambill acknowledges the criticisms leveled at industrial-scale carbon removal technologies, particularly their reliance on significant energy inputs. However, he believes that the emergence of commercially viable fusion energy within the next decade could dramatically alter the economics of carbon removal, making even energy-intensive solutions like DAC cost-effective and scalable.
He emphasizes the importance of taking a long-term perspective, viewing the current efforts to scale up carbon removal as a way to buy time while more permanent and efficient solutions are developed. He envisions a future where carbon removal becomes an integral part of our global infrastructure, akin to waste management, ensuring a livable planet for generations to come.
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