Carbon removal credits platform Carbonfuture raised €5.5 million ($5.27 million) this week in a round led by its investors Carbon Removal Partners, Übermorgen Ventures, and WiVenture. Sustainable Future Ventures and 4impact also joined the funding round.
The new investment will allow Carbonfuture’s MVP (monitoring, verification, reporting) platform to further expand its presence in the U.S., where Carbonfuture has clients like Microsoft, Swiss Re, Klarna, and South Pole. To achieve that, the company will broaden the range of its carbon removal technologies and expand its services to new partners in the ecosystem.
The carbon credits market is rapidly growing and is expected to reach $50 billion by the decade’s end. One risk that needs to be addressed to achieve this potential, however, is low-quality credits that do not deliver on their additionality or durability claims.
Carbonfuture is focused on mitigating the risk of credits and offsets open to misuse. The platform brings together carbon tracking, third-party credit standards, and advanced financing tools for carbon removal technologies. The solution provides businesses with access to a strong partner ecosystem and allows them to accelerate their decarbonization efforts in line with the Paris agreement.
“Our seamless 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,” said Hannes Junginger-Gestrich, CEO of Carbonfuture. “Leading buyers already identified these trust-building elements as value drivers.”
Established in 2020, Carbonfuture is a marketplace and platform for collecting, managing, and trading carbon removal certificates. Back in 2021, the company received an investment of $2.8 million in seed funding from Übermorgen Ventures, Seed + Speed Ventures, Wi Venture, and other business angels.
Recently, Carbonfuture teamed with South Pole to scale up biochar projects in Europe, the U.S., and Africa.