AB 1305 Disclosure
Frontier Climate Management, LLC, a Delaware public benefit limited liability company (“Frontier Management”), Frontier Climate Operations, LLC, a Delaware public benefit limited liability company (“Frontier Operations”), and Frontier Climate, LLC, a Delaware public benefit limited liability company (“Frontier Climate” and, together with Frontier Management and Frontier Operations, collectively “Frontier”), are subsidiaries of Stripe, Inc., a Delaware corporation (“Stripe”). Frontier aggregates buyer demand and negotiates multi-year purchase agreements with carbon removal suppliers, which are signed by Frontier members and partners¹ and (ii) enables businesses to pre-order carbon removal tons through Climate Orders — a Stripe product that retires Frontier vetted carbon removal tons on behalf of buyers.
A team of experts (internal and external) assembled by Frontier evaluates each offtake to determine price and whether the a supplier meets Frontier’s standards, which consider the following criteria:
|Store carbon permanently (>1,000 years)
|Take advantage of carbon sinks and sources that don’t compete for arable land
|Have a path to being affordable at scale (<100 USD per ton)
|Have a path to being a meaningful part of the carbon removal solution portfolio (>0.5 gigatons per year)
|Maximize net removal of atmospheric carbon dioxide
|Result in net new carbon removed, rather than taking credit for removal that was already going to occur
|Have a published protocol that addresses key pathway uncertainties, has responded to scientific community feedback, and has a plan for independent verification of outcomes
|Safety and legality
|Have a compelling case for why they don’t cause additional ecosystem damage or other ongoing externalities, has published ecosystem impact data and responded to feedback from the scientific community, and will actively manage the minimal remaining uncertainty within their deployments based on ongoing ecosystem monitoring
|Have technology that has been validated by data obtained through a pilot deployment
|Have a community benefits plan and has proactively engaged stakeholders and incorporated feedback into their deployment plans
The majority of funds will be contracted via offtake agreements. Each offtake agreement establishes the milestones that must be reached prior to the Frontier members and partners purchasing carbon removal from the supplier. Where conditions are not met under carbon removal offtake agreements, no money is required to be paid by Frontier buyers under the carbon removal offtake agreements. Each offtake agreement requires that a third party verifies the tons prior to delivery and the tons be registered on a registry. Frontier is responsible for overseeing compliance with the agreement terms and approving the third party verifier and registry.
A small portion of demand will be contracted in the form of prepurchase agreements. Buyers who prepurchase carbon removal tons understand that there is no recourse if the supplier is unable to deliver tons.
Additional information about Frontier’s portfolio can be found here.
Frontier is designed to identify and support early-stage carbon removal technologies. Frontier publishes offtake details for each of the projects in Frontier’s portfolio. These offtake details include estimates for delivery timelines and tons of carbon. Because the carbon removal industry is in its early stages, it’s likely that some suppliers will be delayed or fail to deliver. Accordingly, Frontier cannot provide specific dates, protocols, annual amounts of carbon removed, governing standards, registry names, and other details until the carbon removal tons are verified and delivered. Once available, Frontier will regularly update the progress tracker.
¹ Frontier has separate relationships with its partners, such as Watershed, which may resell carbon removal tons acquired through Frontier and have separate commercial terms.