The market for carbon removal credits is rising as businesses cut their greenhouse gas emissions but realise that their internal efforts alone won’t be enough to meet their climate goals. By 2030, it is anticipated that the market for carbon credits would be worth $50B. However, this expansion may be threatened by low-quality credits that fail to live up to their promises of additionality or durability.
Enter Carbonfuture. The Freiburg-based digital marketplace for high-quality carbon removal credits has raised €5.5 million in funding. The new cash will enable the startup to expand its presence with a focus on the U.S. market and boosting its carbon removal technologies.
Founded in 2020, the cleantech startup offers a platform and marketplace for companies who are serious about removing carbon from the atmosphere. It claims to have established an MRV (monitoring, reporting, verification) system for carbon removal. The startup enables a credit market to scale rapidly while delivering environmental benefits. Its platform integrates carbon tracking, third-party credit standards, and financing tools across carbon removal technologies, to ensure credit quality for buyers and sellers.
Carbonfuture’s clients include some of the largest carbon removal buyers in the world, including Microsoft, SwissRe, Klarna, and South Pole.
Carbonfuture CEO Hannes Junginger-Gestrich said: “Our digital carbon tracking solution and strict adherence to independent standards and audits are the main building blocks that guarantee our carbon removal credits transparently deliver the climate impact they claim to make. Leading buyers already identified these trust-building elements as value drivers.”
Matthew Chagan, partner at Sustainable Future Ventures, added: “While significant progress is being made in reducing emissions through operational improvements, we know that carbon removal credits will also be a massive part of reaching these goals. Carbonfuture’s platform plays a critical role in ensuring that these credits are robust and accurate.”