Climate tech

Q1 202429.01.2024

Carbon Accounting & Offsetting

Picture of Shubham Jaipuria

Shubham Jaipuria

at Sifted

Carbon offset schemes — which aim to track and balance emissions by finding other ways to reduce carbon in the atmosphere — have long battled with an image problem. Critics will tell you that businesses purchase low-quality credits and misrepresent their efforts — in other words, greenwashing — so credibility in the industry is incredibly hard won. Undeterred, new startups are piling into the market with promises to make it more accessible, efficient and trustworthy.

VC funds, however, have taken a lot of interest in the industry, with the likes of Lightspeed, Blackrock and General Atlantic all taking bets on startups working on carbon measurement, verification, recording and trading. In 2022, carbon offset startups in Europe secured $1.2bn, propelled by a single $500m round claimed by Paris-based EcoVadis; before dipping to $594m last year. Berlin carbon accounting firm Plan A were one of the biggest winners, scooping a $27m Series A extension round.

In reality, carbon offsetting in Europe has not seen many big rounds: just 22 out of 330+ carbon accounting and offset deals in the past three years have crossed the $15m mark. But as policymakers bring in more sustainability reporting requirements, it’s likely we’ll see more acquisition activity, with businesses keen to bulk up their capabilities ahead of new rules.

20 most promising early-stage startups

Sifted score
9.95
-
Plan A
Carbon emissions tracking and reduction platform.
Strong investor(s)
Serial founder(s)
Hiring
- Year founded
  2017
- HQ
  Berlin, Germany
- Latest round
  Series A
  €25m / Sep 2023
- Total funding
  €37m
View company profile
Sifted score
8.17
-
Ecologi
Strong investor(s)
Serial founder(s)
Hiring
- Year founded
  2019
- HQ
  Bristol, United Kingdom
- Latest round
  Seed
  €4.3m / Nov 2021
- Total funding
  €10.1m
View company profile
Sifted score
7.96
-
Vaayu
Carbon emissions calculation for retailers.
Strong investor(s)
Serial founder(s)
Hiring
- Year founded
  2020
- HQ
  Berlin, Germany
- Latest round
  Seed
  €10.7m / Apr 2022
- Total funding
  €12.1m
View company profile
Sifted score
7.93
-
Climatiq
Automated carbon emissions management solution.
Strong investor(s)
Serial founder(s)
Hiring
- Year founded
  2021
- HQ
  Berlin, Germany
- Latest round
  Grant
  €6m / Mar 2023
- Total funding
  €7.8m
View company profile
Sifted score
7.51
-
Carbon Maps
Environmental impact analysis for food industry.
Strong investor(s)
Serial founder(s)
Hiring
- Year founded
  2023
- HQ
  Lille, France
- Latest round
  Seed
  €3m / Dec 2023
- Total funding
  €7m
View company profile

Related articles

Climate TechAnalysis

November 16, 2023

The big carbon accounting acquisition spree begins

The big carbon accounting acquisition spree begins

By Freya Pratty

Climate TechNews

September 19, 2023

Lightspeed leads $27m round for carbon accounting startup Plan A

By Freya Pratty

Climate TechAnalysis

July 18, 2023

Still buzzy: Two carbon credit startups raise $82m in one day

By Freya Pratty

Climate TechNews

November 3, 2021

Carbon accounting startup Plan A raises $10m six months after seed

Nathan Bonnisseau (CMO)and Lubomila Jordanova (CEO), founders of Plan A

By Eleanor Warnock

Climate TechAnalysis

September 16, 2021

Carbon accounting startups are here to help your business get to net zero. Are they any good?

Carbon accounting startups are here to help your business get to net zero. Are they any good?

By Sarah Drumm

Climate TechAnalysis

August 4, 2021

Does the world need another carbon offsetting platform?

Supercritical cofounders, Michelle You and Aaron Randall

By Sarah Drumm