The direct air capture (DAC) industry has reached an important turning point in North America. Deep Sky, a Canadian carbon removal developer, has issued the continent’s first certified DAC carbon credits. This shows that a leading climate technology is advancing from pilot projects to commercial use.

Deep Sky Alpha in Alberta generated the first credits, where carbon dioxide was captured from the air and stored underground for good. Isometric, an independent carbon registry, verified the removals via its Direct Air Capture Protocol. Then, it issued credits for Microsoft and the Royal Bank of Canada (RBC), which are part of long-term purchase agreements already announced.

The credits also became the world’s first DAC credits carrying the Core Carbon Principles (CCP) label issued through Isometric. The first delivery may have a small carbon removal volume, but its importance goes well beyond the credits issued.

Deep Sky CEO Alex Petre said in an interview:

“This shows ⁠Canada is building, is taking the risks, and it puts us on the map for innovation in carbon removal… People really want this to work because they continue to sign contracts. However, very few projects have actually been delivered.”

Deep Sky Is Building Canada’s Carbon Removal Future

For years, the carbon removal industry has announced billion-dollar investments and large future purchase agreements. Few projects, however, have actually delivered verified carbon credits. Deep Sky has now crossed that gap, showing that permanent carbon removal can move from promise to verified supply.

The milestone also strengthens Canada’s position in one of the fastest-growing climate technology sectors. Unlike most DAC developers that rely on a single capture technology, Deep Sky has adopted a different strategy.

The Montreal-based company describes itself as the world’s first technology-agnostic carbon removal project developer. It combines several DAC technologies in one place and then tests which one works best in real conditions. After that, it deploys the top performer at a commercial scale.

Its flagship facility, Deep Sky Alpha, located near Innisfail, Alberta, moved from project design in late 2024 to commissioning in 2025. In about 18 months, it injected atmospheric CO₂ underground. This created North America’s first certified DAC credits.

The pilot facility can capture roughly 3,000 metric tons of CO₂ annually while serving as a testing ground for several leading DAC companies. Even more, the company has much bigger ambitions.

Deep Sky aims to build about 100 carbon removal facilities in Canada. They will use the country’s plentiful renewable electricity and geological storage. Plus, they’ll tap into Canada’s carbon management know-how. Commercial projects are expected to scale toward one million tons of CO₂ removal per year per site over time.

That long-term vision could position Canada as a major supplier of durable carbon removal credits.

• SEE MORE: Deep Sky and Rubicon Carbon Partner for High-Integrity DAC Carbon Removal Credits

Why Delivering Credits Matters More Than Selling Them

Carbon removal has attracted record corporate investment over the past three years. Microsoft, Google, Stripe, Shopify, JPMorgan Chase, and Frontier have signed purchase agreements. These deals are worth hundreds of millions of dollars, which aim to finance new removal technologies. Yet, many contracts involve future deliveries that may not begin for several years.

Deep Sky’s announcement is different because the credits have already been produced, independently verified, and issued. The project was certified under Isometric’s Direct Air Capture Protocol, which requires developers to:

• account for all project emissions,
• verify net carbon removal, and
• demonstrate permanent underground storage through long-term monitoring.

The certification process gives buyers more confidence. It ensures that each credit stands for one metric ton of CO₂ permanently removed from the atmosphere. The first deliveries also begin Deep Sky’s previously announced carbon removal agreements running through 2034.

Microsoft and RBC were among the company’s founding buyers. Their initial agreement included 10,000 tonnes of carbon removal. They also have options to buy up to one million more tonnes from Deep Sky’s future projects.

RBC Director, Brian Hong, noted:

“This is exactly the kind of action our climate strategy is designed to advance: climate solutions that are scientifically measurable with the potential to scale. Deep Sky has moved with remarkable speed to bring this project to life, and the fact that it’s happening in Alberta—a region central to Canada’s energy future—makes it even more meaningful.”

Deep Sky has since grown its customer base to include TD Bank Group, Lufthansa Group, ENGIE, and Sumitomo Mitsui Banking Corporation. This shows that the need for permanent carbon removal goes beyond just tech companies.

The Race to Scale Direct Air Capture Begins

Deep Sky’s milestone comes as the global DAC industry enters a new growth phase.

The International Energy Agency (IEA) reports over 30 direct air capture plants worldwide. However, they only remove about 0.01 million metric tons of CO₂ each year. That is tiny compared with what climate models suggest will be needed.

The IEA’s Net Zero Emissions by 2050 pathway says that DAC capacity needs to grow to over 60 million metric tons each year by 2030. By mid-century, it should reach hundreds of millions of tons annually.

The Intergovernmental Panel on Climate Change (IPCC) also concludes that carbon dioxide removal will be necessary alongside deep emissions cuts to limit global warming to 1.5°C.

Cost remains the industry’s biggest obstacle.

Today’s DAC projects generally remove carbon at costs ranging from $500 to more than $1,000 per metric ton, depending on technology and scale. Developers expect costs to drop significantly. This will happen as facilities grow larger, manufacturing increases, and learning curves get better.

Governments are helping accelerate that process.

The United States offers the 45Q tax credit, while Canada has introduced major investment tax credits for carbon capture and clean technology projects. These policies aim to cut project costs. They also encourage private investment in carbon removal infrastructure.

RBC and Microsoft’s purchases from Deep Sky illustrate a broader market trend. Corporate buyers want carbon removals that are independently verified. They also prefer solutions that are permanently stored and based on strict scientific standards.

Why Canada Could Lead the Carbon Removal Economy

Deep Sky’s success also highlights Canada’s growing role in the global carbon removal industry. The country combines several competitive advantages.

Canada has abundant renewable electricity, favorable geology for permanent CO₂ storage, an experienced energy workforce, and government policies that support carbon management technologies.

Alberta, in particular, has become one of North America’s leading regions for carbon storage. Existing expertise from the oil and gas industry is helping accelerate new carbon capture and storage projects.

These advantages are attracting growing investment from carbon removal developers seeking locations that can support large-scale deployment. As more commercial projects move forward, Canada could become one of the world’s largest exporters of durable carbon removal credits.

A Turning Point for the Carbon Removal Industry

Deep Sky’s first certified DAC credits represent more than a technical achievement. They show that direct air capture is beginning to transition from research and demonstration into commercial delivery.

The industry still faces major challenges. Costs remain high, and global removal capacity must increase dramatically over the coming decades. Yet, verified deliveries like this help build confidence among buyers, investors, and policymakers.

For Deep Sky, the next goal is no longer proving that direct air capture works. It is scaling from thousands of tons to millions.

If the company succeeds, Canada could become a global leader in permanent carbon removal. More importantly, the industry’s focus may shift from announcing future carbon removal purchases to delivering verified climate results.

• READ MORE: Svante Buys Carbon Alpha to Scale Canada’s Carbon Removal Hub

The post Microsoft and RBC Buy North America’s First Verified Direct Air Capture (DAC) Carbon Credits From Canada’s Deep Sky appeared first on Carbon Credits.

Groundwork BioAg has issued its first verified carbon credits. This is a big step for soil-based carbon removal in the United States under its Rootella Carbon® program.

The company issued 19,568 Verified Carbon Units (VCUs) after independent verification by SCS Global Services. The process used Verra’s Verified Carbon Standard (VCS) and the VM0042 Improved Agricultural Land Management method. The carbon credits have already secured multiple purchase agreements, moving the project from development into commercial delivery.

This is the first U.S. project verified under Verra’s VM0042 method. It’s also the first commercial-scale carbon removal program using mycorrhizal fungi. These naturally occurring soil fungi help plants capture more carbon and store it underground.

Groundwork says its program delivers 100% carbon dioxide removal rather than avoided emissions. It shares up to 70% of net carbon credit revenue with farmers. This creates a financial incentive for them to improve soil health and remove carbon from the atmosphere.

Groundwork BioAg CEO Alon Werber commented:

“This first-of-its-kind issuance represents the holy grail of CDR: scalable, durable, verifiable. We fully intend to disrupt the global CDR market, which delivered a total of 2 MtCO2e last year. In contrast, Rootella Carbon is set to deliver half that amount in the next two years alone.”

Why Soil Carbon Could Be a Climate Superpower

The launch happens as demand for high-quality carbon removal credits keeps rising. This demand exceeds supply, sparking interest in scalable and scientifically proven climate solutions.

Healthy soils store more carbon than the atmosphere and all vegetation combined. The Food and Agriculture Organization (FAO) says better soil management boosts carbon storage. It also improves food production and helps farms resist droughts.

Soil carbon projects use natural biological processes. This is different from engineered carbon removal technologies, which need big industrial facilities. They can also be expanded across millions of acres of farmland with relatively low infrastructure costs.

However, soil carbon has faced questions about permanence because stored carbon can be released if farming practices change.

Groundwork says its use of mycorrhizal fungi helps address this issue. Fungi turn carbon into mineral-associated organic matter (MAOM). This stable soil carbon can stay stored for centuries or even thousands of years, according to studies.

According to the company, its Mycorrhizal Carbon system can remove between 1.5 and 3.5 metric tons of CO₂ per acre each year (4–9 metric tons per hectare). That’s around five times more than the benchmarks for many regenerative farming practices. This includes cover crops and no-till farming.

SEE MORE: Verra Greenlights Record 3 Million Soil Carbon Credits From Mexico Grasslands

Groundwork’s Rapid Expansion Across Farmland

Groundwork’s carbon program has expanded quickly over the past three years. Farmland enrolled in Rootella Carbon has grown from about 9,000 acres in 2023 to more than 700,000 acres across the U.S. Midwest and the Canadian Prairies.

The company estimates that there are around 450 million acres of reduced-tillage farmland in North and South America.

• Its broader agricultural business is also growing. In 2025, Rootella® mycorrhizal inoculants were used on 5.5 million acres globally across 23 commercial markets.

The program creates a new source of income for farmers while improving crop productivity and soil quality. Participating growers receive most of the proceeds from carbon credit sales, rewarding long-term stewardship of agricultural land.

Verra states that the project demonstrates its VM0042 methodology. This method can support strong, science-based carbon accounting for managing agricultural land. Standardized measurement will be essential as soil carbon markets continue to grow.

Why High-Quality Soil Carbon Credits Matter

Corporate buyers want carbon removal projects that offer long-term storage. They also seek projects that meet strict verification standards.

Groundwork says Rootella Carbon stands out because it generates carbon removal credits rather than avoided-emissions credits. It’s mycorrhizal fungi that also help form mineral-associated organic matter, one of the most stable forms of soil carbon. Unlike surface organic matter, it binds carbon to soil minerals, helping keep it stored much longer.

The project is verified under Verra’s VM0042 methodology. This adds credibility as buyers want more transparency and better carbon credits.

Another advantage is cost. Engineered carbon removal technologies such as direct air capture can cost several hundred dollars per metric ton. Nature-based approaches cost less and boost soil health, water retention, biodiversity, and crop resilience. They can’t replace engineered solutions, but they can quickly increase the supply of high-integrity carbon credits.

• The global soil and agricultural carbon credit market is worth $4.2 billion today. It is expected to grow to $11.3 billion by 2034, with an annual growth rate of 11.58%.

On voluntary registries, agricultural credits account for around 100 million metric tons of CO2e. They trade at a baseline carbon price of $4 to $6 per metric ton. This price is influenced by new Greenhouse Gas Protocol balance sheet rules and institutional capital, like Mirova’s recent $30 million allocation.

Industry leaders are shifting to high-quality, tech-verified removals. Key players include aggregators like Indigo Ag and Soil Capital, while major funders such as Bayer and Rabo Carbon Bank also play a role. New measurement methods from registries like Verra are pushing credit prices up. They now range from $5 to over $25 per ton. This trend is making soil carbon a key asset class.

Farmers Become Central to Carbon Removal

Groundwork’s model places farmers at the center of the carbon market. The company shares up to 70% of net carbon credit revenue. This gives growers a strong financial reason to boost soil health while farming as usual.

This reflects a broader shift in agriculture. More farmers are using regenerative practices. They are adopting reduced tillage, cover crops, and biological soil treatments. These methods help improve yields and lower costs. Carbon markets offer another source of income that can help support these changes.

Healthier soils also provide benefits beyond carbon removal. They boost biodiversity, cut erosion, enhance water retention, and support food security. This makes the projects appealing to companies aiming for wider sustainability goals.

A New Model for Nature-Based Carbon Removal

Groundwork BioAg’s first issuance marks an important step for agricultural carbon markets.

The project proves that it’s possible to measure soil carbon removal accurately. It can be verified independently and marketed under a top carbon standard. This could strengthen confidence in nature-based carbon credits as buyers demand greater transparency and integrity.

Challenges remain. Soil carbon projects need to show they last over time. They must measure well and perform consistently in various climates and farming systems. Strong monitoring and independent verification will remain essential as the market grows.

Still, Groundwork’s early success suggests biological solutions can become an important part of the global carbon removal portfolio. The company blends science-based soil management with financial incentives for farmers. This model supports agriculture and promotes climate action.

As demand for high-quality carbon removal grows, projects like Rootella Carbon can boost supply. They also make farmland more valuable in the battle against climate change.

• READ MORE: Boeing Locks in 40,000 Tons of Soil Carbon Removal with Texas-Based Grassroots Carbon

The post Groundwork BioAg Issues First Verra Verified Soil Carbon Credits in U.S. Milestone appeared first on Carbon Credits.

Tesla, Sunrun, and Renew Home are joining forces to build one of the largest virtual power plant (VPP) networks in the United States. The partnership plans to link millions of home batteries, solar panels, smart thermostats, and electric vehicles. This will create a flexible energy network that can provide over 16 gigawatts (GW) of electricity.

The companies say the network could help power data centers, factories, and other large electricity users without relying only on new power plants or transmission lines. Instead, it would use energy already stored in homes and businesses, sending electricity back to the grid when demand is high.

Why AI Is Changing the Power Market

The announcement comes as U.S. electricity demand is rising for the first time in decades. Artificial intelligence (AI), cloud computing, and hyperscale data centers are driving much of this growth. Utilities are now looking for faster ways to add electricity capacity while keeping the grid reliable and cutting emissions.

The proposed 16 GW network would generate about as much electricity as 16 large nuclear reactors. It could also supply power to millions of homes during peak demand periods.

Sunrun CEO Mary Powell remarked:

“The grid of the 1800s cannot power the innovation of 2026. Americans deserve innovation that does not create unnecessary energy costs. When data centers are asked to throttle down operations during the most expensive and stressful hours of the day, we can activate our distributed power plants to help provide them the power they need while also protecting American families from footing the bill for costly new infrastructure.”

The rapid growth of AI is putting increasing pressure on electricity systems around the world.

The International Energy Agency (IEA) says global electricity demand from data centers will more than double by 2030. AI data centers are the main driver because they require huge computing power and run around the clock.

In the United States, the Department of Energy estimates that data centers already use about 4% of the nation’s electricity. That share could rise sharply over the next decade, alongside its water and carbon footprint.

Meeting this demand will require new sources of electricity. Building large power plants and transmission lines can take years or even decades. This is due to delays in permitting, construction, and connecting to the grid.

Virtual power plants offer a faster option. Utilities now combine thousands of smaller energy sources from homes and businesses. This replaces the need to build new generation facilities. These include rooftop solar panels, battery storage, electric vehicles, and smart appliances. These devices can automatically respond when the grid needs extra power.

The U.S. Department of Energy says virtual power plants may offer 80 GW to 160 GW of flexible capacity by 2030. This could cover 10% to 20% of the country’s peak electricity needs.

How the 16 GW Network Will Work

The partnership combines the strengths of three companies.

Tesla offers Powerwall home battery systems, which allow homeowners to store extra solar power. When demand increases, they can send electricity back to the grid.

Sunrun, the largest residential solar installer in the United States, brings its growing network of rooftop solar systems and home batteries. The company now serves nearly one million customers, giving it one of the country’s largest distributed energy networks.

Renew Home adds its software platform, which connects millions of smart thermostats, water heaters, electric vehicles, batteries, and other internet-connected devices. The platform lets utilities coordinate these resources in real time without disrupting customers’ daily routines.

Together, the companies will join their distributed energy resources into one virtual power plant. Utilities can then manage it like a regular power station.

Electricity will come from thousands of homes in different states, not just one big facility. This approach also strengthens grid resilience because power is generated closer to where it is needed.

Tesla Is Building More Than Cars, It’s Building the Future Grid

While Tesla is best known for its electric vehicles, its energy business is becoming a bigger part of its long-term strategy. The company‘s mission is to speed up the world’s shift to sustainable energy. The company invests in electric vehicles and also focuses on:

• Battery storage,
• Solar energy,
• Grid services, and
• Artificial intelligence.

Its Megapack batteries are now used by utilities around the world to support renewable energy and improve grid reliability. Powerwall installations are growing. More homeowners want energy independence and backup power during outages.

Tesla has also set environmental goals beyond vehicle manufacturing. The company aims to cut emissions across its operations by increasing renewable energy use, improving manufacturing efficiency, and expanding battery recycling.

Tesla’s latest Impact Report states that widespread electrification, along with renewable electricity and battery storage, is one of the quickest ways to cut global greenhouse gas emissions. The EV giant is also working on its own VPP system. 

A Tesla Virtual Power Plant connects thousands of homes with Powerwall batteries, rooftop solar systems, EV chargers, and other smart energy devices into a single network that works like a traditional power plant.

Instead of generating electricity from one central spot, the VPP uses software. It helps homes decide when to store, use, or send electricity back to the grid during busy times. This helps improve grid reliability, reduce reliance on expensive fossil fuel peaker plants, and lower emissions.

Homeowners can also earn payments for participating while keeping backup power for outages. In July 2025, Tesla’s California VPP delivered more than 535 MW of grid capacity.

Examples of Tesla Virtual Power Plant programs include:

• California, U.S. – The largest Tesla VPP, operating with utilities such as Pacific Gas and Electric and Southern California Edison.
• Texas, U.S. – Tesla Electric customers with Powerwalls can participate in the state’s VPP program.
• South Australia – One of the world’s first large-scale residential VPPs, connecting thousands of public housing and private homes.
• Puerto Rico – A growing VPP network that helps improve grid resilience following frequent power outages.
• Massachusetts, U.S. – Powerwall owners participate through utility demand response and connected solutions programs.

These projects demonstrate how distributed home batteries can provide utility-scale grid services while supporting the transition to cleaner and more flexible electricity systems.

Tesla Stock Shows Limited Reaction

Despite the importance of the announcement, Tesla’s stock showed only a modest reaction. Investors largely viewed the partnership as a long-term opportunity rather than an immediate earnings driver. The financial impact will depend on how quickly utilities adopt virtual power plants and how fast home battery installations grow.

On the other hand, Sunrun shares jumped over 20% after the announcement. Investors noticed bigger near-term gains for the residential solar company. The partnership also strengthens Sunrun’s strategy of expanding beyond rooftop solar into grid services and energy management.

For Tesla, however, the announcement boosts confidence that its energy storage business could play a bigger role next to its automotive business.

Home Batteries Could Become the Next Power Plants

The proposed 16 GW virtual power plant is more than just another clean energy partnership. It shows how electricity systems may evolve to meet rising demand from AI, electrification, and renewable energy.

Utilities can use millions of connected batteries, solar systems, electric vehicles, and smart devices in homes. This way, they do not need to build enough power plants for just a few hours of peak demand each year.

Challenges remain. Expanding virtual power plants need the following for a successful implementation:

• Supportive regulations,
• Customer participation,
• Strong cybersecurity, and 
• Better coordination between utilities and tech providers.

Even so, momentum is growing. As AI drives electricity demand to record levels, distributed energy resources are shifting from niche programs to essential parts of the power grid.

For Tesla, Sunrun, and Renew Home, the 16 GW initiative is more than a technology partnership. It shows how home energy systems could become a key part of tomorrow’s electricity grid by providing flexible, low-carbon power exactly when it is needed most.

• READ MORE: Power Play: California’s Virtual Power Plant Revolution

The post Tesla (TSLA Stock), Sunrun, and Renew Home Reveal 16 GW Virtual Power Plant to Meet AI’s Soaring Energy Demand appeared first on Carbon Credits.

Companies around the world are spending billions to cut their carbon emissions. But even as they work toward net-zero goals, they continue to release large amounts of greenhouse gases every year.

A new report from Gold Standard, Pinwheel, and ClimatePartner says these “ongoing emissions” could become a major source of climate funding. If companies track their yearly emissions, they could invest up to $17 billion each year into projects that cut or remove carbon from the air.

The report introduces Ongoing Emissions Responsibility (OER). OER suggests that companies should contribute yearly to climate projects instead of relying on carbon credits. They should also keep working on reducing emissions in their operations.

Gold Standard says this approach could unlock billions of dollars in private investment at a time when the world faces a growing climate finance gap.

Why Climate Finance Is Still Falling Short

The report comes as governments and businesses struggle to raise enough money to meet global climate goals.

The United Nations estimates that developing countries will need around $1.3 trillion each year by 2035. This funding is vital for cutting emissions and adapting to climate change. Current funding is still far below that level, leaving a gap of hundreds of billions of dollars each year.

Most companies focus their climate spending on reducing emissions from their own operations and supply chains. While this remains essential, Gold Standard says it does little to address the emissions businesses continue to release while working toward net zero.

Many companies do not expect to reach net zero until 2040 or 2050. Until then, billions of tons of carbon dioxide will continue entering the atmosphere. Gold Standard says companies need to take financial responsibility for ongoing emissions now, and not wait for decades.

What Is Ongoing Emissions Responsibility?

OER is meant to work alongside — not replace — corporate decarbonization. The report specifically refers to it as:

“OER is a structured approach through which organisations can take responsibility for emissions that remain unabated each year as they progress toward net zero.”

Under the framework, companies continue cutting emissions across their operations and value chains. At the same time, they invest in verified climate projects based on the amount of emissions they still produce each year.

That funding can support a wide range of climate solutions, including:

• Carbon removal technologies, 
• Forest restoration and conservation, 
• Methane reduction projects, 
• Renewable energy, and
• Climate adaptation programs.

Unlike traditional carbon offsets, companies would not claim these projects cancel out their own emissions. Instead, they would present them as contributions to global climate action.

Gold Standard says this makes climate claims clearer and reduces the risk of greenwashing. OER activities fall under these categories:

The framework also backs the idea of Beyond Value Chain Mitigation (BVCM). This encourages companies to invest in emissions cuts outside their own operations while they keep decarbonizing internally.

How Companies Could Generate $17 Billion Each Year

Gold Standard believes corporate climate finance could grow rapidly if more businesses adopt OER.

The report models a system in which companies apply an internal carbon price to their ongoing emissions. Even relatively low carbon prices could generate around $17 billion every year for climate action.

• The model assumes businesses contribute $20 per metric ton of CO₂ for 10% of the emissions they continue to produce while working toward net zero.

Many companies already use internal carbon pricing to guide business decisions. According to CDP, more than 1,000 companies worldwide either use an internal carbon price or plan to introduce one. Gold Standard proposes linking those internal carbon fees directly to climate investments.

The report also recommends a “money-for-tonne” approach. Under this model, companies contribute funding for every tonne of carbon dioxide they continue to emit. Unlike buying offsets, these payments would provide steady funding for climate projects while companies continue reducing their own emissions.

Gold Standard recommends that businesses make OER part of their long-term climate strategy.

It identifies five priorities:

• Integrate OER into company planning.
• Adopt stable funding methods.
• Build diversified climate portfolios.
• Strengthen transparency.
• Develop internal expertise.

The New Rules for Credible Carbon Credit Use

Gold Standard says carbon credits can still play an important role in corporate climate action—but only if companies use them the right way. The report argues that credits should no longer be used to claim that a company has “offset” or “neutralized” its emissions. It writes:

“Carbon credits are a funding mechanism that quantifies mitigation outcomes from climate projects and are used to fund climate action without implying one-for-one compensation of a buyer’s emissions. This distinction separates the tool from compensation style messaging and aligns its use with contribution-based responsibility for ongoing emissions.”

The report also sets out several conditions for credible carbon credit use. Companies should buy credits from trusted programs with transparent methods, independent verification, and strong environmental and social safeguards. Credits should align with the goals of the Paris Agreement and avoid double-counting.

Gold Standard suggests regular checks, clear public reports, and ongoing monitoring of carbon credit portfolios. Companies should show that carbon credits complement, not replace, direct emissions cuts. They must keep value-chain decarbonization as their top priority.

A Shift Beyond Traditional Carbon Offsetting

Gold Standard’s proposal comes as the voluntary carbon market continues to evolve.

For many years, companies used carbon credits mainly to offset emissions and support net-zero claims. However, concerns about project quality and transparency have increased scrutiny of the market.

Organizations like the Integrity Council for the Voluntary Carbon Market (ICVCM), the Voluntary Carbon Markets Integrity Initiative (VCMI), and the Science Based Targets initiative (SBTi) have launched new standards. These aim to boost market integrity.

The biggest shift is the growing focus on cutting emissions first. Under the SBTi Corporate Net-Zero Standard, companies need to cut at least 90% of their emissions. Only then can they use carbon removals for the small amount left.

• SEE MORE: SBTi Launches New Net-Zero Standard V2.0, Raising the Bar for Corporate Climate Action

Gold Standard’s OER framework supports this approach. Companies should report their emissions openly. Instead of saying carbon credits offset these emissions, they would fund climate action outside their own operations.

This approach could improve transparency and help companies avoid misleading climate claims.

Can OER Help Close the Climate Finance Gap?

OER is still a new idea, and companies are only beginning to test how it will work. Gold Standard says the industry needs more pilot projects, case studies, and collaboration. This step is essential before the framework can be widely adopted.

Even so, the report reflects a broader shift in corporate climate action.

More businesses now recognize that reaching net zero is not only about reducing emissions inside their own operations. It also means helping fund the global transition to a low-carbon economy while those reductions are taking place.

If companies take financial responsibility for their emissions, billions could support projects that restore forests, reduce methane, expand renewable energy, and scale carbon removal technologies. That funding could help narrow the climate finance gap while speeding up global emissions reductions.

Whether OER becomes common practice remains to be seen. But Gold Standard’s proposal suggests the next step in corporate climate action may not be claiming carbon neutrality. It may be taking greater responsibility for the emissions that companies continue to produce today.

• READ MORE: Singapore and the Philippines Launch Historic Article 6 Carbon Credit Deal, Boosting Climate Finance in Asia

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