Unfair GapsπŸ‡ΊπŸ‡Έ United States

Regenerative Design Business Guide

4Documented Cases
Evidence-Backed

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All 4 Documented Cases

Manual Verification Bottlenecks and Idle Project Capacity

Contributes to $2.6B industry loss by 2030 from delays

Manual data collection, verification via Excel/PDFs, and retrospective reporting create severe bottlenecks, leading to idle project capacity and unissued credits. These inefficiencies hinder scaling carbon removal initiatives in regenerative design contexts. The process relies on time-consuming visual inspections prone to delays.

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Over-Crediting from Flawed Verification Leading to Invalid Credits

95 projects rejected from 2,485 total (systemic rate), tied to market integrity losses

Systemic over-crediting in 95 Verra projects despite multiple audits highlights verification failures, resulting in worthless credits and rework costs. Projects get rejected/suspended post-issuance, forcing compensation or refunds. This indicates recurring poor quality in documentation validation.

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Fraud Risk from Delayed and Manual Verification

Undermines VCM scaling, contributing to $2.6B+ losses and 4.8GT unissued credits

Retrospective data reporting (months to a year delay) combined with opaque manual documentation exposes the carbon credit process to fraud, eroding market integrity and buyer trust. This susceptibility leads to potential theft or invalid credits in regenerative projects. Digital solutions are needed to deter ongoing abuse.

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Verification Delays Preventing Credit Issuance and Revenue

$2.6 billion by 2030

Delays in the carbon credit verification process by registries and validation/verification bodies (VVBs) prevent timely issuance of credits, blocking project developers from selling and receiving payments. This creates extended time-to-cash cycles in the documentation and verification workflow. Thallo's report quantifies this as a systemic bottleneck across the voluntary carbon market (VCM), affecting scaling efforts.

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