Climate tech startup BeZero Carbon is on a mission to bring greater transparency to the Voluntary Carbon Market – a growing space in the drive towards Net Zero. The London-based team has now secured about €48.4 million ($50 million) to scale, with plans to expand into the US and Singapore.
Reaching Net Zero is an ambitious target that companies, organizations and governments right around the world are attempting to reach. Bringing carbon emissions to a place of neutrality requires fundamental structural change across society and the economy – and according to the leading voices being heard this month at COP27, we aren’t getting there quickly enough as things stand.
One of the growing phenomena that is aiming to positively contribute to climate goals is the Voluntary Carbon Market. It’s a space where anyone seeking to, and otherwise not obliged to, can offset their emissions by purchasing carbon credits. The market is predicted to be worth about €50 billion by 2030. However, as the market grows, so does criticism of it. Namely, there are concerns about a lack of oversight, a lack of transparency, and increasing evidence of greenwashing.
Aiming to address this is London-based startup, BeZero Carbon. The startup has now picked up one of the biggest raises in the UK climate tech sector this year and is set to expand.
Tommy Ricketts, CEO and co-founder of BeZero Carbon, said: “We have a once-in-a-generation opportunity to build environmental and ecological restoration into the heart of the economic model. Starting with carbon, effective ecosystem markets have huge potential to accelerate the Net Zero transition and generate economic prosperity. Developing the information infrastructure that allows these markets to take off is fundamental to their growth. The raise will ensure we can continue to invest in our ratings, risk and analytics tools to make this vision a reality.”
The details:
- €48.4 million ($50 million) raised in a Series B round
- Funding led by US-based Quantum Energy Partners, with strategic investment from EDF Group, Hitachi Ventures and Intercontinental Exchange
- Existing investors Molten Ventures, Norrsken VC, Illuminate Financial, Qima and Contrarian Ventures also contributed funding for the round.
- One of the biggest Series B raises in UK climate tech this year.
- The latest funding round brings the total raised by BeZero Carbon to more than $70 million in the past year
Jeffrey Harris, Venture Partner at Quantum Energy Partners, said: “Set to reach $50bn by 2030, the Voluntary Carbon Market will play a central role in the transition to Net Zero. BeZero Carbon has built the biggest ratings agency in the market, with an incredible team of experts that are leaders in their fields. We are excited to be supporting them with their next stage of growth to help build a new climate economy.”
Accelerating Net Zero transition
Founded in 2020, BeZero Carbon has quickly established itself as a key player in the carbon market. The startup provides extensive coverage of carbon ratings, backed by a team of climate scientists, earth observation specialists, data scientists and financial analysts to improve decision-making in the market, through improved information accessibility, transparency and credibility.
Net Zero targets are now just as much in the private realm as the public sector, with an increasing number of companies opting to invest in carbon credits to get there. It means the Voluntary Carbon Market is now being considered a core part of global strategy to get to a place of carbon neutrality. Its growth presents an opportunity to channel significant amounts of capital into environmental projects, accelerating climate action and delivering strong financial returns.
BeZero’s goal is to ensure this market grows in a way that is transparent and offers a genuine impact on the planet.
Its freely available ratings methodology has strict qualifying criteria and explicitly promotes better public disclosure. With more information readily available to interrogate a credit’s carbon efficacy, the more confidence investors and end-buyers can have that it is achieving its climate claim.
Paying clients can access full project assessments, research insights and risk tools through its subscription-based platform. Marketplaces and exchanges can also host the ratings through its API integration.
The London-based innovators have already secured a global client base, including major institutions from the energy, commodities and financial sectors as well as leading climate platforms, including Watershed, Anglo American, and Equinor and Glencore. BeZero Carbon’s ratings are also available on leading carbon exchanges, such as CBL’s Xpansiv platform, and marketplaces, such as Cloverly and Patch.
In addition, through a partnership with ICE, a leading global provider of data, technology and market infrastructure, the companies will work to launch innovative standardized exchange-traded products. Hitachi, Ltd. and EDF Group both plan to use BeZero’s ratings to bolster their own sustainability initiatives and support their pathways to Net Zero and services for their customers. The partnerships will also support BeZero Carbon’s expansion into Asian and Continental European markets.
With his new funding, the startup will be able to invest in creating risk-based products for other ecosystem markets, and open offices in New York and Singapore. It’ll also expand its proprietary automation toolkit, deepen its earth observation capabilities, and expand the team.
Sebastien Cross, Chief Innovation Officer and co-founder of BeZero Carbon, said: “We are grateful to our investors, clients and partners who have recognised that the team and tools we have built at BeZero Carbon will transform the Voluntary Carbon Market. We are thrilled to continue our expansion with offices in the US and Asia, delivering world-leading insight and analysis that powers global environmental markets.”
