By Jordan Levine, Founder Dynamic Sky

Every manufacturing process from automobile assembly to consumer-packaged goods

packaging has a supply chain management function that matches demand to supply and

efficiently allocates capital. This supply chain management function normally comprises

5-15% of the cost of goods sold (COGS) of any given manufactured “widget”.

The act of greenhouse gas removal is in itself a manufacturing process. Market participants are

creating “pallets” of sequestered greenhouse gas.

Thus, each greenhouse gas removal technology system (the manufacturing asset) will need a

supply chain function to provide investors a perspective on sequestered greenhouse against cost,

guide direct labor participants, and establish an audit trail to guarantee high quality credits.

Large enterprises, the entities best positioned to leverage novel greenhouse gas removal

technology, will be hesitant to build their own supply chain management functions to conduct the

associated tasks with managing greenhouse gas removal technology. The rationale is simple; They

have their own businesses and processes to manage. As an example, Microsoft should not be in

the business of planting trees when it needs to manage its core business of software development and sales.

A third-party technology-based management platform should exist to conduct this

management on behalf of greenhouse gas removal investors (both institutions and corporations).

The correct solution is a software-based supply chain management system that can match

sequestered greenhouse gases against projects and costs. This software must seamlessly

integrate via API to all major enterprise ERP systems (e.g., Oracle, Salesforce, IBM, etc.) to provide the requisite visibility to its users.

With this framework in place, investors (institutions and corporations) can fearlessly and

aggressively invest into greenhouse gas removal projects—knowing they can track progress,

spend, and outcome. Meanwhile, insurance entities can leverage a common framework provided

by this system of record to underwrite both delivery risk (think surety bonds for forestry projects) and issued risks (post carbon registry).

While this concept of third-party supply chain management software to support greenhouse gas removal projects probably is not the most glamorous of ideas, without it, this entire industry will not move.  This is the necessary infrastructure to attract high quality capital and enable insurance underwriters to enter the market at scale. Carbon Guide will build this digital infrastructure.

To learn more, please contact Jordan Levine at .

Dynamic Sky’s Carbon Guide is actively facilitating a public-private partnership between EQT, the West Virginia Division of Natural Resources (WVDNR), and the West Virginia Department of Forestation (WVDOF).