It was a major moment when we finally announced the launch of Component Earth last month. In contrast to 2021–23, climate is decidedly not a hot industry, certainly not against the backdrop of AI’s all-consuming pull for capital. But for our team, climate has never been a trend or work of convenience: it is our collective life’s work. We believe the broad consensus and public perception of carbon as an investable sector is completely misunderstood, and that it is an attractive time for climate investments.

The conventional debate regarding carbon markets asks whether carbon in general is an investable market. The more useful, and sophisticated question, is which segment of carbon is investable, on what timeline, and against what risks? The answer to this question is fundamental to Component Earth’s founding and thesis. We believe that the most rigorous, and most critical place to start answering that question is with evaluating the future buyers who will set the bar for marketable supply.