Restoring Trust to Enable Carbon Markets’ Full Potential
In our mission to accelerate climate action, we’re excited to unveil a partnership between Hyphen and Thallo.
As both public and private sectors rally around the call to take definitive climate action, the integral role of carbon markets becomes abundantly clear. The scale of the climate challenge is so vast that in order to stop it, we need to both protect and expand existing natural resources, as well as remove carbon directly from the atmosphere. Today, the carbon markets are our best–and one of the only–available tools to achieve both aims.
As these markets offer solutions, however, their credibility is under constant scrutiny. The recent collapse in the value of nature-related carbon credits is a stark reminder of the challenges the voluntary carbon market (VCM) faces. The market can be a real climate solution, but only if we solve some of the fundamental problems that exist today. Reform and progress are necessary to building the foundations of the market’s future.
Many in the industry were skeptical when a January 2023 Guardian article highlighted reports that claimed 90% of evaluated tropical forest offsets were found to be "worthless." Similarly, an August 2023 research report in Science illuminated concerns around the impact of Reduced Emissions from Deforestation and forest Degradation (REDD+) projects in stemming deforestation, despite their growing market share. These revelations paint a picture of a market in crisis, one where integrity and credibility are of great value and importance.
Better monitoring, reporting and verification (MRV) is crucial to dispelling prevalent doubts in the carbon market. The root of these uncertainties stems from verification challenges. In particular, with nature-related offsets, verification of CO2 and CO2e movements becomes a contentious issue. This uncertainty breeds skepticism regarding the legitimacy of nature-related carbon offset claims.
In the midst of these challenges emerges an opportunity: to enhance the VCM through innovative collaboration. Collective action, rooted in mutual understanding and a shared vision, paves the way for remarkable progress. It's with this spirit of cooperation that we join hands with Thallo.
This partnership signifies more than a mere strategic alliance; it embodies the transformative potential of collaboration in addressing large-scale challenges. By harnessing the collective expertise, resources, and commitment of both Hyphen and Thallo, we can equip stakeholders with the tools needed to fortify and evolve current systems. Our vision is to underscore nature's role as irreplaceable capital, ensuring its preservation, expansion and importance.
Building on this foundational vision, we delve deeper into the intricacies of our planet's capabilities. Terrestrial ecosystems, in their profound ability to sequester CO2, act as nature's counterbalance to human-induced emissions. And while the Paris Agreement's Article 6.4 under the UNFCCC lays down a blueprint for offsetting emissions, the canvas is vast, with ample opportunities for precision, refinement, and expansion.
Drawing inspiration from our planet’s profound capabilities, Hyphen has developed a cutting-edge approach to atmospheric-based dMRV to measure exchanges (fluxes) to and from the atmosphere in real-time. Implementing atmospheric-based dMRV, we are able to move away from opaque forward prediction based emission estimations to clear, continuous, and actionable insights. This is achieved by leveraging an array of site-specific GHG flux monitoring infrastructure with sophisticated tools, such as geospatial data, blockchain, and smart contracts. This not only enables the verification of carbon markets to measure emissions reductions in a continuous real-time manner but also ensures thorough and transparent traceability of derived carbon credits. The outcome is a surge in confidence and a broadening vista for carbon markets.
Thallo further elevates this landscape. At its core, Thallo meticulously crafts an infrastructure tailored for the synthesis and digitization of carbon credits. But it's more than just about efficiency; it's about democratizing the carbon market, making it transparent, accountable, and welcoming for all stakeholders. The ultimate goal is to ensure that every action taken is underpinned by clarity and is resilient to scrutiny.
Together, our combined efforts lay the groundwork for a carbon market that is robust, efficient, and above all, trustworthy. With the integration of atmospheric-based dMRV and working with groups such as Thallo, we're setting the stage for a market that is transparent, traceable, credible, and efficient. By focusing on collaboration, and arming ourselves with the right tools and knowledge, our ambition is to not just restore integrity in nature-related carbon offsets, but to also incentivize the protection and expansion of our planet's invaluable natural resources.
With this partnership as an emblem of the broad collaboration among our peers to accelerate climate action, the carbon market can evolve into a force that not only facilitates transactions but also stands as a beacon of hope, trust, and transformation.
As we steer forward, we invite stakeholders from all sectors to rally with us, forging a future where the carbon market is not just a business platform but a holistic ecosystem driving sustainability and protecting the natural wonders that our world offers.
Thallo is a climate solutions company providing access to the whole carbon market. We do this through our Carbon-as-a-Service API, which allows businesses to incorporate carbon credits directly into their products and services. Thallo uses cutting edge technology to revolutionize and democratize the carbon markets, making it easier for buyers and sellers of high-quality carbon credits to find each other. Its team of veteran software entrepreneurs and climate tech professionals combine technological expertise with deep sustainability knowledge to build the carbon market of the future.
Hyphen is committed to pioneering science-based digital MRV solutions with a strong emphasis on environmental preservation and collaborative stakeholder engagement. We firmly believe that safeguarding biodiversity and ecosystems is imperative for a sustainable future. By harnessing real-time atmospheric greenhouse gas data, our mission is to enhance the integrity of carbon markets.
Hyphen’s methodologies have been honed through over six decades of research conducted under the auspices of the World Meteorological Organization. We place atmospheric greenhouse gas monitoring at the forefront of efforts to improve the verification of emissions reductions, removals and sources. In an era characterized by the global shift toward a green economy and the overarching goals of the Paris Agreement, Hyphen stands as a leader, advocating for science-driven MRV solutions that unlock the full potential of voluntary carbon markets and comprehensive sustainability initiatives.