We spoke with David Vranicar, Sustainability Operations Lead at Shopify, about why they’re investing early, how they choose suppliers, their take on carbon pricing, and what made Phlair’s electrochemical DAC tech stand out.

Why did Shopify decide to get involved in carbon removal so early?

David: Our CEO was a big part of it. I remember in 2019 he tweeted something like, "Who should I talk to in carbon removal?" People replied with names like Klaus Lackner and other leaders in the space. He took a real interest in the issue and helped drive the creation of our Sustainability Fund.

Our approach was: there's too much carbon in the atmosphere, and we can’t remove it ourselves, but we can be the demand. That’s where Shopify comes in. If we buy carbon removal, we help signal to the market that this technology is worth building. That was our starting point.

So it’s not just about offsetting emissions?

David: Not at all. The goal is to make carbon removal viable in the first place. There just needs to be a substantial supply of credits in the future. And that won’t happen without deals now.

We’re trying to be a strong demand signal. If companies know there’s someone there to buy carbon removal, it helps unlock capital, scale tech, and attract talent. And we can act faster than regulators or standards bodies. That’s the value we can add right now.

How has that evolved since 2019?

David: Originally, we committed at least $1 million per year to carbon removal. Since then, we’ve signed contracts totalling almost $100 million, going well beyond our original pledge.

We don't know what carbon removal technologies will scale fastest, or even which ones will work. So we purchase across many pathways: biomass carbon removal and storage, DAC, enhanced rock weathering, and many more.

There's this magic number floating around: 100 $ per ton of CO2. What are your thoughts on the price target of $100 for technical carbon removals?

David: I don't think it’s been that helpful. It created unrealistic expectations. You had people predicting $120 per ton of CO2 by 2024 and under $100 by 2026. But here we are in 2025, and DAC is still $600–700 a ton.

There’s so much trust that needs to be built in this space. And setting cost targets we can’t hit hurts that.

That said, we obviously do want costs to come down. But we're still in the phase where you need to pay a premium to help get this market off the ground.

You’re using some of the credits you purchase to offer carbon neutral shipping to merchants with Shopify Planet. Tell us about your achievements with Planet.

David: So far, 48 million orders have shipped carbon neutral, resulting in the removal of around 34,000 tons of carbon. That’s all-time, not just one year. But it’s a number we’re proud of.

Many early buyers include ROFO (right of first offer) clauses in their contracts to secure supply in future projects. What’s your approach here?

David: We have those clauses in some contracts, primarily the larger deals we’re signing of late with more mature companies. But more importantly, we need the credits to exist in the first place. There won’t be anything to buy in the future if we don’t help build the market now.

Are you legally required to buy carbon removal?

David: No. There’s no regulation pushing us. But we still do it. Investors care. Some users care. And we care. We think it’s the right thing to do, even if it's hard to quantify the return.

How do you track the business impact of your sustainability efforts?

David: It’s hard to measure. We like to say we’re “data-informed, not data-obsessed.” But we’ve definitely made noise: We’ve been featured in the Wall Street Journal. Our former director gave a TED Talk on CDR that’s been viewed over a million times. And internally, people think it’s cool. That matters.

What made you choose Phlair specifically?

David: We’ve always had a soft spot for DAC. Being a tech company, we've always believed in using engineering to solve hard problems. We'd already supported DAC using thermal and vacuum approaches. But Phlair’s pH-swing, electrochemical method is a whole new branch. Phlair’s approach – fully electric, no crazy heat, scalable with off-the-shelf components – is exciting.

Who do you think will be the next wave of buyers?

David: Maybe airlines – United and Lufthansa are showing interest. There’s also a lot of movement in the maritime shipping space. But beyond the first wave of high-margin tech companies, it’s still unclear. I hope more show up.