Why this investor doesn’t back companies that use carbon offsets
Zachary Bogue, co-managing partner for Data Collective LLC, speaks during the Future of Innovation: Spotlight on Artificial Intelligence Conference in San Francisco, California, U.S., on Thursday, June 22, 2017. The market for AI technologies is estimated to generate more than $60 billion in productivity improvements for U.S. businesses annually.
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The Silicon Valley venture capital firm DCVC invests in all kinds of climate tech companies including geothermal power, aerial methane imaging, advanced nuclear fission reactors, fabrics made out of mycelium, wastewater filtration technology — to name a few.
But there is one category of the climate tech landscape that Zack Bogue, a co-founder of DCVC does not invest in: Carbon offsets.
“We really don’t underwrite or like to see companies that are using carbon offsets,” Bogue told CNBC in an interview at the end of September in an interview in the Palo Alto office. “We do not look at companies that need to use carbon offsets to make their business model work.”
A carbon offset is a certificate or voucher that a company or organization buys that represents the reduction of a metric ton, or 2,205 pounds, of carbon dioxide emissions. If a company or organization is unable to eliminate the release of greenhouse gasses in their operations, they may purchase a carbon offset to compensate for their emissions.
“There’s been some studies out there that up to 90% of carbon offsets are completely ineffective — have had no impact — which is a tragedy of our time, because big Fortune 500 companies are paying millions of dollars to these carbon offsets, and continuing to emit in the meantime,” Bogue told CNBC. “And these offsets are actually having zero impact.”
The effectiveness of a carbon offset is a contentious issue, but at least one white paper published in April 2021 from the Finnish nonprofit and startup Compensate found that 90 percent of carbon capture projects were ineffective. Compensate has both a non-profit advocacy arm and a company that sells what it deems to be high quality carbon offsets. For the white paper, Compensate analyzed more than 100 nature-based carbon offsets certified by third-party verifiers in the space.
Of the carbon offsets which Compensate deemed a failure, 52% were guilty of what Compensate called “additionality” — for instance, offset credits sold to protect trees that were never in any danger of being cut down. Another 16% of the projects Compensate analyzed were considered a failure because their permanence was considered in jeopardy. For example, coastal restoration projects for mangroves in Bangladesh were jeopardized when floods devastated the country, Compensate said.
So, too, said Bogue of local California projects.
“There were some forests north of here that were the subject of carbon offsets where someone paid millions of dollars to not cut the forest down and — whether or not that’s legitimate, we can leave that aside — because those forests burned down,” Bogue said. “So they actually released the carbon that the company was paying to not have released and that the company emitted.”
DCVC does not invest in companies that use carbon offsets right now, but that is not an indictment against the idea.
“To be clear, I want I want them to exist,” Bogue told CNBC. “I want there to be a carbon tax, I want carbon credits, carbon offsets.”
But there isn’t enough transparency or accountability in the industry, Bogue said. To properly stand up the industry, there would need to be an agency akin to the United States Food and Drug Administration (FDA), according to Bogue.
“There’s a very set and rigorous process that you need to do to take a molecule from discovery and up until you’re dosing a human with it: You need to prove that it’s effective, you need to prove it’s non toxic,” Bogue said. “I would say that the imperative to reducing CO2 is as high of a human health imperative as putting small molecules into our body. Full stop.”
Until then, the industry is too uncertain to be a safe place for the money that DCVC invests on behalf of its limited partners, which are the likes of college endowments and hospitals.
“It needs to be rigorous, and apples to apples and, and verifiable and documentable,” Bogue said. “That’s just not where it is today. That’s where we need to get to, but that’s also why don’t think it’s investable.”
Climate XChange’s Annual EV Raffle is back for the 10th year running – and for the first time ever, Climate XChange has two raffle options on the table! The nonprofit has helped lucky winners custom-order their ideal EVs for the past decade. Now you have the chance to kick off your holiday season with a brand new EV for as little as $100.
About half of the raffle tickets have been sold so far for each of the raffles – you can see the live ticket count on Climate XChange’s homepage – so your odds of winning are better than ever.
But don’t wait – raffle ticket sales end on December 8!
Climate XChange is working hard to help states transition to a zero-emissions economy. Every ticket you buy supports this mission while giving you a chance to drive home your dream EV.
Here’s how Climate XChange’s 10th Annual Raffle works:
The Luxury Raffle
- Grand Prize: The winner can choose any EV on the market, fully customized up to $120,000. This year, you can split the prize between two EVs if the total is $120,000 or less.
- Taxes covered: This raffle comes with no strings – Climate XChange also pays all of the taxes.
- Runner-up prizes: Even if you don’t win the Grand Prize, you still have a chance at the 2nd prize of $12,500 and the 3rd prize of $7,500.
- Ticket price: $250.
- Grand Prize Drawing: December 12, 2025.
- Only 5,000 tickets will be sold for the Luxury Raffle.
The Mini Raffle (New for 2025)
- Grand Prize: Choose any EV on the market, fully customized, up to $45,000. This is the perfect raffle if you’re ready to make the switch to an EV but aren’t in the market for a luxury model.
- Taxes covered: Climate XChange pays all the taxes on the Mini Raffle, too.
- Ticket price: $100.
- Only 3,500 tickets will be sold for the Mini Raffle.
Why it’s worth entering
For a decade, Climate XChange has run a raffle that’s fair, transparent, and exciting. Every ticket stub is printed, and the entire drawing is live-streamed, including the loading of the raffle drum. Independent auditors also oversee the process.
Plus, your odds on the Luxury and Mini Raffles are far better than most car raffles, and they’re even better if you enter both.
Remember that only 5,000 tickets will be sold for the Luxury Raffle and only 3,500 for the Mini Raffle, and around half of the available tickets have been sold so far, so don’t miss your shot at your dream EV!
Climate XChange personally works with the winners to help them build and order their dream EVs. The winner of the Ninth Annual EV Raffle built a gorgeous storm blue Rivian R1T.
How to enter
Go to CarbonRaffle.org/Electrek before December 8 to buy your ticket. Start dreaming up your perfect EV – and know that no matter what, you’re helping accelerate the shift to clean energy.
Who is Climate XChange?
Climate XChange (CXC) is a nonpartisan nonprofit working to help states pass effective, equitable climate policies because they’re critical in accelerating the transition to a zero-emissions economy. CXC advances state climate policy through its State Climate Policy Network (SCPN) – a community of more than 15,000 advocates and policymakers – and its State Climate Policy Dashboard, a leading data platform for tracking climate action across the US.
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The CSC Monterey – one of the most charming little electric scooters on the US market – has dropped to a shockingly low $1,699, down from its original $2,899 MSRP. That’s nearly half off for a full-size, street-legal electric scooter that channels major Honda Super Cub energy, but without the gas, noise, or maintenance of the original.
CSC Motorcycles, based in Azusa, California, has a long history of importing and supporting small-format electric and gas bikes, but the Monterey has always stood out as the brand’s “fun vibes first” model. With its step-through frame, big retro headlight, slim bodywork, and upright seating position, it looks like something from a 1960s postcard – just brought into the modern era with lithium batteries and a brushless hub motor.
I had my first experience on one of these scooters back in 2021, when I reviewed the then-new model here on Electrek. I instantly fell in love with it and even got one for my dad. It now lives at his place and I think he gets just as much joy from looking at it in his garage as riding it.
You can see my review video below.
The performance is solidly moped-class, which is exactly what it’s designed for. A 2,400W rear hub motor pushes the Monterey up to a claimed 30 mph or 48 km/h (I found it really topped out at closer to 32 mph or 51 km/h), making it perfect for city streets, beach towns, and lower-speed suburban routes.
A 60V, roughly 1.6 kWh removable battery offers around 30–40 miles (48-64 km) of real-world range, depending on how aggressively you twist the throttle. It’s commuter-ready, grocery-run-ready, and campus-ready right out of the crate.
It’s also remarkably approachable. At around 181 pounds (82 kg), the Monterey is light for a sit-down scooter, making it easy to maneuver and park. There’s a small storage cubby, LED lighting, and the usual simple twist-and-go operation. And it comes with full support from CSC, a company that keeps a massive warehouse stocked with components and spare parts.
My sister has a CSC SG250 (I’m still trying to convert her to electric) and has gotten great support from them in the past, including from their mechanics walking her through carburetor questions over the phone. So I know from personal experience that CSC is a great company that stands behind its bikes.
But the real story here is the price. Scooters in this class typically hover between $2,500 and $4,500, and electric retro-style models often jump well above that.
At $1,699, the Monterey is one of the least expensive street-legal electric scooters available from a reputable US distributor, especially one that actually stocks parts and provides phone support.
If you’ve been curious about swapping a few car errands for something electric – or you just want a fun, vintage-styled runabout for getting around town – this is one of the best deals of the year.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss a big Tesla Robotaxi setback, the new Mercedes-Benz CLA EV, Bollinger is over, and more.
Today’s episode is brought to you by Climate XChange, a nonpartisan nonprofit working to help states pass effective, equitable climate policies. Sales end on Dec. 8th for its 10th annual EV raffle, where participants have multiple opportunities to win their dream model. Visit CarbonRaffle.org/Electrek to learn more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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