The challenges of building a carbon removal portfolio

Cost Curves

Understanding cost curves is crucial for carbon removal investments, as emphasized by Stacy Kauk. She explains that buyers like Shopify are not just purchasing credits but investing in potential future returns. This involves assessing the likelihood of cost reductions and the risks involved.

The cost curve is critical. We don't want to be buying something that's going to stay flat because that's not pushing innovation.

--- Stacy Kauk

Shayle Kann and Stacy discuss how understanding these curves helps in making informed decisions about which technologies to support, ensuring that investments lead to viable market offerings 1.

   

Tech Comparisons

Comparing natural and engineered systems reveals significant differences in cost and scalability. Stacy Kauk highlights the appeal of technologies that enhance natural systems due to their lower energy requirements and cost-effectiveness. However, the scalability and long-term economic viability of these systems remain uncertain.

I really like carbon removal that enhances natural systems because they use less energy, which makes them more cost effective.

--- Stacy Kauk

Shayle Kann notes that while engineered systems like direct air capture (DAC) offer theoretical scalability, they are often more energy and capital-intensive, presenting a complex decision-making landscape for investors 2.