Carbon Limit Credit Cards
The Signal: DOconomy, a fintech startup in Sweden, is introducing a new kind of credit card. Rather than a monthly dollar limit, this card will limit purchases based on the combined carbon footprint of the things you buy. The card, named DO Black, is designed to help eco-conscious consumers cut their carbon footprint in half by 2030.
Why it’s a Big Deal: Up to now, there’s been one major factor determining how companies do business: cost. Whether it’s cost of production, or cost to the consumer, dollars and cents drive action. Good environmental intentions often hold little sway when stacked against cost considerations.
By turning environmental impact into a second currency (and using it to limit purchases), DOconomy stands to change the incentive structure for businesses. Even inexpensive products with a high carbon footprint would be less “affordable,” since they quickly deplete a buyer’s carbon limit.
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