Carbon market downturn leads to staff cuts at Pachama

Pachama, a company specializing in carbon markets and known for its partnerships with companies like Salesforce and Boston Consulting Group, has recently laid off approximately 20 employees due to economic uncertainties and anti-ESG sentiments affecting the voluntary carbon market. Founded in 2018 by Diego Saez Gil, Pachama initially gained recognition for its tools that assess and monitor high-quality nature-based credits using remote sensing and AI technology. Despite securing significant funding from prominent investors and expanding into project development, the company has decided to refocus on its core mission of utilizing geospatial AI to support sustainable land management and climate solutions. Following the layoffs, Pachama’s workforce now stands at around 35 employees.

This downsizing is part of a larger trend affecting young carbon market companies, with others like Heirloom and Climeworks also experiencing setbacks such as staff reductions and project cancellations. The challenges faced by these companies are exacerbated by the current turbulence in the voluntary carbon market, which has seen a decline in the value of carbon credits traded due to concerns about their integrity. Despite these difficulties, there are positive signs in the market, including a growing demand for higher-quality credits endorsed by the Integrity Council for the Voluntary Carbon Market.

Overall, the recent layoffs at Pachama and other carbon market companies reflect the broader challenges facing the industry amid economic and political uncertainties as well as shifting market dynamics.