Driving Decarbonisation Through the Voluntary Carbon Market: An Approach for Start-Ups

Abstract: Climate change concerns have led to the settlement of agreements and policies that aim to bring nations and industries together to keep global warming under 1.5 degrees Celsius. Diverse strategies have been implemented in the last decades to achieve this goal, such as investment in near-zero emissions technologies and the implementation of carbon markets. This study explores the role of sustainable start-ups as project developers in the voluntary carbon market and provides guidance, through the structure of the business model and assessment of relevant stakeholders, for their successful entry into this emergent market. A case study about the voluntary carbon market and the perspective of start-ups was the approach given to this work. Twelve semi- structure interviews with key stakeholders were conducted and through a thematic analysis, key factors for start-ups to consider were identified. These factors include access to information, barriers to entry, financial resources, innovation and technology, market dynamics, motivation and perception, regulatory environment, and stakeholders’ engagement. The findings were the foundation to develop and structure a business model canvas as well as a technological roadmap to assist start-ups in navigating through the voluntary carbon market. Despite the challenges encountered, positioning in the voluntary carbon market enables start-ups to play a vital role in the decarbonization efforts and the transition to a low- carbon economy.