for investors - instead of getting dividends, they get carbon credits.
Drewelies' startup Ceezer allows customers to invest in a fund that doesn't generate carbon credits. The fund is then distributed to carbon removal projects. Corporations use mechanisms like internal carbon taxes to fund these initiatives, which is an attractive way to invest in measurable climate action with less downside risk, Drewelies said.
Corporate-led funds are just a temporary solution, according to Yee Lee, VP of growth at Terraformation, a startup cofounded by ex-Twitter CEO Yishan Wong. He expects bespoke funds will phase out when the quality of carbon credits is better assured. Still, Terraformation has launched its own fund together with social enterprise Bankers without Boundaries.
It can give investors the opportunity to enter or exit forestry investments at different stages, meaning they can realize financial returns in shorter time frames rather than having to wait for newly-planted trees to reach maturity.This focus on quality has resulted in a supply-side crunch of credits, according to Niklas Kaskeala, cofounder of Compensate. His startup, which is known for its