Frequently asked questions
The price of climate credits is changing. Here's what it means for your subscription.
Why are prices increasing?
Over the past year, carbon costs have been climbing due to soaring demand and regulations. Between June 2021 and January 2022, the price of nature-based offsets rose from around $4.65 per tonne of carbon to about $14.40. More activity in the market and regulations guarantee higher quality projects and better long-term benefits for the communities. We try to keep a variety of projects and price points on the platform and follow market trends to ensure the projects are not undervaluing their impact.
The project I was investing in got discontinued. Does it impact the validity of previous credits purchased?
No. The credits you have purchased are verified tonnes of carbon that have either been avoided or removed. When projects submit to a carbon methodology certification bodies such as Verra place a certain percentage (10% to 20%) into a buffer. This buffer pool can then be used if there are any failures at the project location, this can be elements such as fires, illegal logging etc. Verra holds these buffer pools; the carbon purchased is actually the carbon avoided or removed.
The project I was investing in got discontinued. Do I need to replace all historical purchases?
No. Your carbon is still confirmed, and if there were a project failure, credits within the buffer pool would be used. There have been some recent concerns over fires in California burning through buffer pools. When Earthly selects its projects, it reviews such risks to ensure the carbon credits are of a high quality and projects can withstand future risks brought on by climate change.
Is Earthly increasing prices to make profits?
No, Earthly's margins remain the same. Over the past year, we have limited the impact of rising carbon costs. We are only increasing prices now because, without it, our sales prices are unsustainable. Our goal is to continue giving our community the best possible climate impact value.
How has Earthly kept prices low over the past year?
Although the price of carbon offsetting has increased significantly during the past year, our Research team has spent a lot of time and energy sourcing some of the best nature-based projects, at the best rate available. With this increase set to continue, we have had to increase our budget for carbon reduction to better align with current market prices so that we can continue to work with effective nature-based solutions.