{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,12]],"date-time":"2026-05-12T14:15:03Z","timestamp":1778595303326,"version":"3.51.4"},"reference-count":25,"publisher":"Oxford University Press (OUP)","issue":"5","license":[{"start":{"date-parts":[[2026,5,12]],"date-time":"2026-05-12T00:00:00Z","timestamp":1778544000000},"content-version":"vor","delay-in-days":12,"URL":"https:\/\/creativecommons.org\/licenses\/by\/4.0\/"}],"funder":[{"DOI":"10.13039\/501100004189","name":"Max Planck Society","doi-asserted-by":"publisher","id":[{"id":"10.13039\/501100004189","id-type":"DOI","asserted-by":"publisher"}]}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2026,4,30]]},"abstract":"<jats:title>Abstract<\/jats:title>\n                  <jats:p>Carbon-crediting mechanisms could play a critical role in achieving net zero, yet growing evidence shows that many offset projects lack environmental integrity. Achieving geological net zero requires balancing residual fossil fuel\u2013based emissions with permanent carbon dioxide removal (CDR), making the scale-up of CDR essential. However, current discussions on improving carbon-crediting mechanisms have focused too narrowly on implementation challenges, such as refining standards or monitoring systems. We argue that scaling permanent carbon removal requires a new financing model to address market barriers. This financing model must reduce price volatility and raise credit prices to attract investment. We propose a tiered auction framework to build and scale markets for novel CDR technologies by (i) setting a permanent removal target, (ii) ensuring minimum quality standards, and (iii) running reverse auctions combined with first-of-a-kind finance.<\/jats:p>","DOI":"10.1093\/pnasnexus\/pgag117","type":"journal-article","created":{"date-parts":[[2026,5,12]],"date-time":"2026-05-12T13:16:41Z","timestamp":1778591801000},"source":"Crossref","is-referenced-by-count":0,"title":["Fixing carbon credits requires a new financing model"],"prefix":"10.1093","volume":"5","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-1149-8938","authenticated-orcid":false,"given":"Benedict S","family":"Probst","sequence":"first","affiliation":[{"name":"Net Zero Lab, Max Planck Institute for Innovation and Competition , 80333 Munich ,","place":["Germany"]},{"name":"Group for Sustainability and Technology, ETH Zurich , 8006 Zurich ,","place":["Switzerland"]},{"name":"Centre for Energy, Environment and Natural Resource Governance, Department of Land Economy, University of Cambridge , Cambridge CB2 1RX ,","place":["United Kingdom"]}],"role":[{"role":"author","vocabulary":"crossref"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-8617-5175","authenticated-orcid":false,"given":"Florian","family":"Egli","sequence":"additional","affiliation":[{"name":"School of Social Sciences and Technology, Technical University of Munich , 80333 Munich ,","place":["Germany"]},{"name":"School of Management, Technical University of Munich , 80333 Munich ,","place":["Germany"]}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"286","published-online":{"date-parts":[[2026,5,12]]},"reference":[{"key":"2026051209163907800_pgag117-B1","author":"World Bank"},{"key":"2026051209163907800_pgag117-B2","doi-asserted-by":"crossref","first-page":"9562","DOI":"10.1038\/s41467-024-53645-z","article-title":"Systematic assessment of the achieved emission reductions of carbon crediting projects","volume":"15","author":"Probst","year":"2024","journal-title":"Nat Commun"},{"key":"2026051209163907800_pgag117-B3","first-page":"132","volume-title":"Quality assessment of REDD+ carbon credit projects","author":"Holm","year":"2023"},{"key":"2026051209163907800_pgag117-B4","doi-asserted-by":"crossref","first-page":"191","DOI":"10.1038\/s41893-023-01259-6","article-title":"Pervasive over-crediting from cookstove offset methodologies","volume":"7","author":"Gill-Wiehl","year":"2024","journal-title":"Nat Sustain"},{"key":"2026051209163907800_pgag117-B5","doi-asserted-by":"crossref","first-page":"24188","DOI":"10.1073\/pnas.2004334117","article-title":"Overstated carbon emission reductions from voluntary REDD+ projects in the Brazilian Amazon","volume":"117","author":"West","year":"2020","journal-title":"Proc Natl Acad Sci U S A"},{"key":"2026051209163907800_pgag117-B6","doi-asserted-by":"crossref","first-page":"873","DOI":"10.1126\/science.ade3535","article-title":"Action needed to make carbon offsets from forest conservation work for climate change mitigation","volume":"877","author":"West","year":"2023","journal-title":"Science"},{"key":"2026051209163907800_pgag117-B7","doi-asserted-by":"crossref","first-page":"1214","DOI":"10.1038\/s41586-025-09116-6","article-title":"Towards more effective nature-based climate solutions in global forests","volume":"643","author":"Anderegg","year":"2025","journal-title":"Nature"},{"key":"2026051209163907800_pgag117-B8","author":"ICVCM"},{"key":"2026051209163907800_pgag117-B9","author":"VCMI"},{"key":"2026051209163907800_pgag117-B10","author":"Haya","year":"2025"},{"key":"2026051209163907800_pgag117-B11","doi-asserted-by":"crossref","first-page":"343","DOI":"10.1038\/s41586-024-08326-8","article-title":"Geological Net Zero and the need for disaggregated accounting for carbon sinks","volume":"638","author":"Allen","year":"2025","journal-title":"Nature"},{"key":"2026051209163907800_pgag117-B12","doi-asserted-by":"crossref","first-page":"645","DOI":"10.1038\/s43247-024-01808-7","article-title":"Durability of carbon dioxide removal is critical for Paris climate goals","volume":"5","author":"Brunner","year":"2024","journal-title":"Commun Earth Environ"},{"key":"2026051209163907800_pgag117-B13","volume-title":"The state of carbon dioxide removal","author":"Smith","year":"2024","edition":"2nd ed"},{"key":"2026051209163907800_pgag117-B14","doi-asserted-by":"crossref","first-page":"1249","DOI":"10.1016\/j.apenergy.2018.11.098","article-title":"How do policies mobilize private finance for renewable energy?\u2014a systematic review with an investor perspective","volume":"236","author":"Polzin","year":"2019","journal-title":"Appl Energy"},{"key":"2026051209163907800_pgag117-B15","author":"Ecosystem Marketplace"},{"key":"2026051209163907800_pgag117-B16","author":"Haya","year":"2024"},{"key":"2026051209163907800_pgag117-B17"},{"key":"2026051209163907800_pgag117-B18","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1257\/app.20230052","article-title":"Do carbon offsets offset carbon?","volume":"17","author":"Calel","year":"2025","journal-title":"Am Econ J Appl Econ"},{"key":"2026051209163907800_pgag117-B19","author":"Chan"},{"key":"2026051209163907800_pgag117-B20","doi-asserted-by":"crossref","first-page":"111428","DOI":"10.1016\/j.enpol.2020.111428","article-title":"Renewable energy investment risk: an investigation of changes over time and the underlying drivers","volume":"140","author":"Egli","year":"2020","journal-title":"Energy Policy"},{"key":"2026051209163907800_pgag117-B21","author":"ClimeFi"},{"key":"2026051209163907800_pgag117-B22","author":"European Scientific Advisory Board on Climate Change"},{"key":"2026051209163907800_pgag117-B23","doi-asserted-by":"crossref","first-page":"768","DOI":"10.1038\/s41586-023-06153-x","article-title":"The social value of offsets","volume":"619","author":"Groom","year":"2023","journal-title":"Nature"},{"key":"2026051209163907800_pgag117-B24","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1093\/pnasnexus\/pgaf091","article-title":"Embracing imperfection: carbon offset markets must learn to mitigate the risk of overcrediting","volume":"4","author":"Cabiyo","year":"2025","journal-title":"PNAS Nexus"},{"key":"2026051209163907800_pgag117-B25","doi-asserted-by":"crossref","first-page":"158","DOI":"10.1016\/j.enpol.2018.01.009","article-title":"The multiple roles of state investment banks in low-carbon energy finance: an analysis of Australia, the UK and Germany","volume":"115","author":"Geddes","year":"2018","journal-title":"Energy Policy"}],"container-title":["PNAS Nexus"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/academic.oup.com\/pnasnexus\/article-pdf\/5\/5\/pgag117\/68271064\/pgag117.pdf","content-type":"application\/pdf","content-version":"vor","intended-application":"syndication"},{"URL":"https:\/\/academic.oup.com\/pnasnexus\/article-pdf\/5\/5\/pgag117\/68271064\/pgag117.pdf","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,5,12]],"date-time":"2026-05-12T13:16:43Z","timestamp":1778591803000},"score":1,"resource":{"primary":{"URL":"https:\/\/academic.oup.com\/pnasnexus\/article\/doi\/10.1093\/pnasnexus\/pgag117\/8676256"}},"subtitle":[],"editor":[{"given":"Edson","family":"Severnini","sequence":"additional","affiliation":[],"role":[{"role":"editor","vocabulary":"crossref"}]}],"short-title":[],"issued":{"date-parts":[[2026,4,30]]},"references-count":25,"journal-issue":{"issue":"5","published-print":{"date-parts":[[2026,4,30]]}},"URL":"https:\/\/doi.org\/10.1093\/pnasnexus\/pgag117","relation":{},"ISSN":["2752-6542"],"issn-type":[{"value":"2752-6542","type":"electronic"}],"subject":[],"published-other":{"date-parts":[[2026,5]]},"published":{"date-parts":[[2026,4,30]]},"article-number":"pgag117"}}