Engineered Solutions and the Future of Carbon Credits

Engineered solutions are specifically designed to capture and reduce carbon emissions by obtaining real and measurable data. As the world continues its emission reduction efforts, a scalable solution has never been more necessary. Carbon markets have now emerged as a powerful tool to incentivize emissions reductions, putting a price on carbon and creating a financial motive for companies to lower their carbon footprint. A major problem with the market is that traditional carbon offset methodologies, such as reforestation, are not enough to reach climate goals. Engineered solutions gives the carbon market new technologies capable of reducing greenhouse gas emissions at scale.

Technologies

· Direct Air Capture (DAC): DAC technology captures carbon dioxide directly from the atmosphere. The captured carbon dioxide is then either stored underground in geological formations or used to produce sustainable products such as synthetic fuels.
· Carbon Capture, Utilization, and Storage (CCUS): CCUS technology captures carbon dioxide directly from the source of industrial facilities, power plants, or chemical processes before they enter the atmosphere. Once captured, carbon dioxide can be used to produce concrete, chemicals, or biofuels, effectively turning waste into a valuable resource.
· Bioenergy with Carbon Capture and Storage (BECCS): BECCS is the combination of burning biomass with carbon capture and storage, which results in a negative emission process. This process allows for more carbon dioxide to be removed from the atmosphere than is emitted.
· Other: Sequestration-in-place, ocean-based solution, and enhanced weathering are other engineered solutions aimed at reducing the amount of carbon dioxide emitted. These processes include enhancing the ocean’s natural ability to absorb carbon dioxide, accelerating the natural weathering of minerals that react with carbon dioxide, and injecting carbon dioxide into deep rock layers, trapping it for thousands of years and preventing it from entering the atmosphere.

Role of Engineered Solutions

· Scalability and Impact: Engineered solutions can be deployed in a variety of settings unlike nature-based projects that are restricted by geological and ecological constraints. These solutions can scale up to capture millions, if not billions of metric tons of carbon dioxide annually.
· High-Quality Carbon Credits: Engineered solutions offer highly quantifiable and verifiable emission data, which is critical for the integrity of the carbon markets. Credits generated from engineered solutions are less susceptible to issues such as fraud.
· Diversification of Portfolio: The incorporation of engineered solutions into the carbon market allows for investors to obtain a diversified portfolio of carbon offsets. By integrating both nature-based as well as engineered solutions, investors can build a more balanced portfolio that maximizes environmental impact.

Future of Carbon Markets

· Dominance of Engineered Solutions: The future of carbon markets will most likely be dominated by a combination of engineered and nature-based solutions. Engineered solutions can provide complements to the limitations that nature-based solutions but will ultimately dominate by its superior quality and scalability attributes. As technology becomes more advanced, new standards will be set for the carbon market, putting engineered solutions in the driver seat of high-quality carbon credits.
· Long-Term Impact: Engineered solutions are set to revolutionize the global carbon market by enabling large-scale carbon removal, a necessity to achieving net-zero. The integration will set to develop new regulatory frameworks to create a sustainable economic model for carbon removal.

Engineered solutions are set to revolutionize carbon markets by providing scalable and reliable methods of reducing greenhouse gas emissions. At the same time, engineered solutions enhance both market credibility and investor confidence, playing a critical role in achieving global climate targets. The combination of nature-based and engineered solutions credits will create a comprehensive strategy for fostering a sustainable future.

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