Market Problem

Market Inefficiencies & Negative Externalities

The compliance and voluntary markets are both characterised by incorrect carbon ratio parameterisation. Market inefficiencies have led to widespread double-counting and the erroneous valuation of the environmental impact of offsets, creating counterproductive market and pricing imbalances. Furthermore, there is limited availability of market registries that provide customers with a way to verify the authenticity of their assets, contributing to fraud and inaccurate reporting. Market inefficiencies have led to severe undervaluation of environmentally conscious operations. Consequently, the reduced incentive to offset emissions, save energy, and purchase renewable energy has restricted industry uptake of green hydrogen and threatens to dampen market participation in future years.