Inside our revolving fund for greenhouse gases
How it works, what it's done, and how to participate
A new generation of companies is tackling climate change by removing carbon from the atmosphere, cutting methane at the source, and destroying refrigerants before they can do damage. The technologies are real and the projects are ready to deliver.
But too many of them don’t make it, because the capital they need to survive their earliest stage never shows up.
The gap is a timing problem.
There’s a pivotal window between when a project is viable and when commercial buyers are ready to commit. In that window, developers need funding to hire, build, and execute. But funders wait for proof and commercial buyers wait for scale.
Without early capital to bridge that gap, projects fold. It’s a loss for the developer and a permanent loss for the climate.
Our revolving fund closes the funding gap
We move capital to vetted greenhouse gas projects earlier than the market typically would, then recycle the funds as projects deliver, so the same dollars go to work again and again.
Here’s how it works:
Philanthropic capital enters the fund via a grant or donation.
Terraset makes early pre-purchase commitments to vetted projects, giving them the capital to actually remove greenhouse gases.
Projects deliver verified credits to Terraset.
Credits are sold to buyers.
Revenue returns to the fund and gets deployed into the next project.
Each donation or purchase funds a cycle, and every cycle supports more projects.
Proof the model works: A case study with Graphyte and Wren
Project developer: Graphyte, a carbon removal company
Buyer: Wren, a consumer climate platform
When Graphyte needed early capital to move from planning into execution, commercial buyers were interested but not ready to commit at the timing or scale the project required.
We provided an early pre-purchase commitment of over $100,000 through this revolving fund. This gave Graphyte the funding to move forward without waiting for buyers to catch up.
Graphyte delivered verified tons. Wren purchased them from Terraset. The revenue from that sale returned to our revolving fund, and is ready to be redeployed into new commitments.
Philanthropic capital moved first, buyer procurement completed the cycle, and together they proved the model works, with a real project and real tons delivered.
In our first year, we deployed over $1 million through the fund and have already secured more than $200,000 in onward purchases, allowing us to quickly redeploy into new commitments. That funding flow will accelerate as more of our initial pre-purchases are delivered in the next 12 months.
Early capital funds projects and builds markets.
Greenhouse gas solutions are deeply underfunded relative to the scale of what’s needed. Demand from corporate buyers is growing, but credible supply takes time to develop, and developers can’t wait for buyers to catch up.
By absorbing early-stage innovation risks, philanthropic funding enables CDR developers to reach the milestones necessary to prove technical viability.
Each completed cycle lowers perceived risk, builds buyer confidence, and brings more solutions to market faster. This fund supports individual projects but it is also creating the conditions for a functioning climate market where credible supply can actually meet growing demand.
There’s a role for every kind of capital.
Contribute philanthropic capital
A contribution to this fund is a grant that keeps working. Rather than funding a single project, capital moves through multiple cycles, deploying into projects, returning as credits are delivered, and going back out to the next. This is philanthropy as market infrastructure: one contribution, compounding impact over time.
Purchase removal and abatement credits
As projects deliver verified tons, we make those credits available for purchase, giving buyers access to high-integrity, vetted credits while returning capital to the fund so new projects can move forward.
Invest through a PRI or recoverable grant
PRIs and recoverable grants support the same early-stage commitments as philanthropic contributions, but with the option to take repayment. A PRI through this mechanism becomes part of a platform that deploys capital into vetted, high-integrity projects cycle after cycle. An investment helps more companies deliver, with returns coming back to fund the next projects.
Some partners combine approaches, contributing funding to accelerate projects while purchasing credits to achieve sustainability goals.
The gap is real, but innovative capital can close it.
If you’re thinking about how your philanthropy, investment, or purchasing power can have the greatest climate impact, we’d love to talk.
Explore participation in the revolving fund for greenhouse gases by reaching out to our team at hello@terrasetclimate.org.