Jan 26, 2022 - Energy & Environment

Startup seeking "truth" in carbon offsets raises $33M

An illustration of a hand cleaning the smoke coming from a coal plant.

Illustration: Rebecca Zisser/Axios

Sylvera, a London-based startup that aims to provide accurate and independent information about carbon offsets, raised $32.6 million in a Series A funding round co-led by Index Ventures and Insight Partners.

Why it matters: Offsets, like forest planting and preservation, can help businesses become more climate-friendly. But the carbon credit market is notoriously saddled with integrity and verification problems.

How it works: Sylvera says the funding will help its mission to become a "source of truth" in the carbon offset market via accurate ratings information.

  • The company says it uses proprietary data and machine learning to provide "the most comprehensive and accessible insights and market intelligence."
  • Customers thus far include Salesforce, which is also an investor, Delta Airlines, Shell and Cargill, the company said.

What's next: The company hopes to become the equivalent to Moody's for the carbon credits market, and says its team has expertise in artificial intelligence, geospatial technology and other relevant fields.

What they're saying: CEO Allister Furey, in a blog post on the funding, said better data and transparency can make offsets a more effective tool against climate change.

  • "If weaker credits are removed from the market or discounted, supply tightens," he writes.
  • "When buyer confidence in quality increases, demand, and willingness to pay, grows."
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