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The carbon credit market is undergoing consolidation as Carbon Direct acquires Pachama, a company focused on nature-based carbon credits. This move reflects the challenges faced by the voluntary carbon market, which has been affected by economic uncertainty and criticism over its effectiveness. Pachama had previously laid off approximately 20 employees this summer due to a decline in voluntary carbon market activity. The acquisition highlights the growing importance of science-driven carbon management in a sector under scrutiny. This article provides insight into the evolving landscape of carbon credits and the factors influencing market dynamics.
Key facts
- Carbon Direct has acquired Pachama, a company focused on nature-based carbon credits.
- Pachama laid off approximately 20 employees this summer due to a decline in voluntary carbon market activity.
- The acquisition comes amid a broader trend of consolidation in the carbon credit market.
- Pachama had raised $88 million in funding, while Carbon Direct had raised $60.8 million.
- The voluntary carbon market faces criticism for not delivering on its promises, with some credits failing to result in actual carbon reductions.
