In its latest climate report released on Thursday, the e-commerce giant said less than half of the carbon credits it paid for were actually “delivered” in 2022, largely because the supply of carbon removal is “increasing slower than anticipated.” (The Logic)

Talking point: Carbon credits are considered delivered after their associated emissions reductions have been completed and verified. Shopify has sought out carbon credits that can be third-party verified, to ensure its purchases translate into actual emissions reductions, but verification can lead to slower delivery. Shopify spokesperson Jackie Warren said the company was “prepared for” some delivery delays. The company plans to spend a total of $925 million on carbon credits by 2030 via a project called Frontier, alongside other major tech companies including Alphabet, Meta and Stripe. The report laid out several challenges facing carbon offset markets more broadly, including a lack of seed funding for tech companies and a shortage of large credit-buyers. “We need many more corporate buyers to participate in the market,” Stacy Kauk, Shopify’s head of sustainability, said in a LinkedIn post on Thursday. “There are not enough right now.”

Editor’s note: This briefing has been updated to clarify that Shopify’s efforts are in the carbon removal market.