London-based BeZero Carbon, a ratings agency for the voluntary carbon market, announced on Monday, that it has raised $50M (approximately €48.33M) in a Series B round of funding. With this, the company brings its total raised capital to more than $70M (approximately €67.67M) in the past year.
The investment was led by US-based investment firm Quantum Energy Partners, with strategic investment from EDF Group through its corporate venture capital arm EDF Pulse Ventures1, Hitachi Ventures2, and Intercontinental Exchange (ICE).
Existing investors Molten Ventures, Norrsken VC, Illuminate Financial, Qima, and Contrarian Ventures also participated in this round.
Jeffrey Harris, Venture Partner at Quantum Energy Partners, says, “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.”
Capital utilisation
BeZero Carbon says it will use the funds to drive innovation in environmental markets through the development of ratings, risk and analytics tools, and open offices in New York and Singapore.
In order to strengthen its position as the top ratings and research organisation in the voluntary carbon market, it will continue to broaden its arsenal of custom automation tools, deepen its earth observation skills, and invest in top talent.
Tommy Ricketts, CEO and co-founder of BeZero Carbon, says, “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.”
Global carbon ratings and risk analytics
BeZero Carbon was founded in 2020 by Tommy Ricketts and Sebastien Cross to help build ecosystem markets. The company is a ratings agency for the voluntary carbon market. Combining expertise across climate science, finance and policy, it provides ratings, risk and data tools that improve information accessibility and decision-making.
The ratings methodology used by BeZero Carbon, which is freely available, has strict requirements and actively encourages improved public disclosure. The more information available to interrogate a credit’s carbon efficacy, the more confidence investors and end-buyers can have that it is achieving its climate claim.
The company’s website also makes available all headline ratings and summaries. It is the only carbon ratings agency to do this. Paying clients can access full project assessments, research insights and risk tools through its subscription-based platform. Through the integration of its API, marketplaces and exchanges may also host the ratings.
Major organisations from the energy, commodities, and financial sectors, as well as top climate platforms like Watershed, Anglo American, Equinor, and Glencore, make up BeZero Carbon’s clientele on a global scale. BeZero Carbon ratings can also be found on carbon marketplaces like Cloverly and Patch as well as carbon exchanges like CBL’s Xpansiv platform.
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