The curious case of Schrödinger’s DAC

Here are some key takeaways from the report

• There are a range of views on how to assess risk from embodied carbon emissions for early-stage direct air capture projects. 

• BeZero’s approach, informed by our experience evaluating project execution risk and by similar frameworks in the finance world, takes into account the share of emissions already amortised, the developer’s funding position, and the technical challenges still ahead.

• In our view, approaches that assign all the risk from embodied emissions to the earliest-issued credits risk creating a false dichotomy between otherwise identical credits issued by the same project, with the same methods, but at different times…leading to a curious case of Schrödinger’s DAC.