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&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 Catalyst is supported by Antenna Group. For 25 years, Antenna has partnered with leading clean-economy innovators to build their brands and accelerate business growth. If you’re a startup, investor, enterprise or innovation ecosystem that’s creating positive change, Antenna is ready to power your impact. Visit antennagroup.com to learn more. Catalyst is brought to you by Atmos Financial. Atmos is revolutionizing finance by leveraging your deposits to exclusively fund decarbonization solutions, like solar and electrification. Join in under 2 minutes at joinatmos.com/catalyst.