Climate and Fintech Startup Carbonˣ Raises €900,000 in Pre-Seed Funding

The carbonˣ team just announced its €900,000 pre-seed funding round with the leading fintech company, SaaS, and impact investors, including Algolia co-founders Nicolas Dessaigne and Julien Lemoine. The money will be used to scale operations, meet growing customer demand and expand its presence in EMEA.

Carbonˣ is a climate and fintech startup that helps companies meet their net-zero targets by lowering the risk of procuring permanent carbon credits while unleashing accelerated demand for the emissions reduction sector.

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Achieving the Paris Agreement’s goal of limiting global warming to 1.5°C above pre-industrial levels is a daunting task

While reducing emissions and decarbonizing all aspects of our economy are critical, a perhaps lesser-known aspect of combating climate change is the ongoing need to remove carbon from our atmosphere for safe and permanent storage. Carbon removal is critical because there are hard-to-remove emissions in certain sectors of the economy that remain active even after most or all decarbonization and reduction measures have been implemented.

The Intergovernmental Panel on Climate Change (IPCC), an authority on climate change, has determined that 10 billion tons of carbon will need to be removed annually by 2050. Given that the current high-value, permanent carbon dioxide removal is 10,000 tons per year, most projections call for a 1,000,000-fold increase in carbon removal over the next 28 years.

The confusing situation with carbon credits

To meet this daunting challenge and prepare for future regulations that would continue to make carbon emissions a cost to business, many companies are now making net-zero commitments. This area is rapidly evolving, particularly in the Voluntary Carbon Market (VCM), where companies can now participate in procuring high-quality, permanent carbon abatement credits. Despite all efforts, more and more companies are exposed to potential greenwashing and financial risks due to the rapidly changing environment.

This is largely due to the ambiguity surrounding carbon credits, particularly the low-value credits that are difficult to verify compared to the high-value, permanent carbon credits that are in short supply and many of which are offered for delivery at a later date.

Aggregation of demand and capital flows

In response to this ambiguity and lack of market oversight, the carbonˣ company, founded in 2022, has developed an innovative new approach to help companies meet their net-zero targets with verified carbon offset projects, guarantee the integrity of carbon credits, and minimize the risk of greenwashing and non-delivery – all in an effort to maximize the company’s climate impact. By providing trusted and reliable carbon mining procurement services, carbonˣ aims to act as a catalyst for the industry by aggregating corporate demand and directing the flow of capital to high-quality carbon mining projects, while laying the foundation for a sustainable VCM.

This pre-seed round will help carbonˣ launch its first carbon capture pool and expand its team and presence in EMEA

“Carbonˣ is helping companies achieve net zero by sourcing permanent carbon credits while unleashing catalytic demand to stimulate the CDR sector. We do this by sourcing and evaluating the best CDR technologies for the Carbonˣ CDR pool and then generating standardized carbon removal credits of the highest quality. This approach reduces the burden on companies to procure carbon reduction credits while maximizing their climate impact,” said Paolo Piffaretti, carbonˣ co-founder and CEO.

“I am excited and impressed by the ambition and vision of the carbonx team to help companies achieve net zero; this is an important and big opportunity. I see climate change as one of the most important areas for development and growth, and I look forward to the future with carbonx,” said Nicolas Dessaigne, Algolia co-founder and group partner at YC.

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(Featured image by catazul via Pixabay)

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First published in moneycab, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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