Carbon Accounting Led H1 2022 Climate Fintech Funding With €673M Inflow
Climate change is real, and its impact is felt in various industries. To combat the climate crisis, many companies are looking for solutions that can help them reduce their carbon emissions and understand their environmental impact. Carbon accounting is a sub-sector of climate fintech that offers an efficient solution for measuring a company’s emissions.
Carbon accounting involves collecting data from sources such as energy, transport and waste management to track a company’s carbon emissions. Companies can use software solutions to efficiently compile their environmental metrics and assess their supply chains for Scope 1, 2 and 3 footprints. By understanding the sources of emissions, companies can better plan how to reduce them in the future.
The sector is rapidly gaining ground. In the first half of 2022, carbon accounting startups brought in 673 million euros globally, according to an analysis by BanklessTimes.com.
It is an increasingly crowded sector in Europe where startups want to develop and test different technologies for better carbon tracking solutions. Sweep, a French company, was the best-funded player in the sector with a Series B round of $73 million. As the industry matures, investors are looking to pick winners and consolidate their positions.
Commenting on the data, BanklessTimes CEO Jonathan Merry said
Carbon accounting is essential to combating climate change
Climate change is a growing concern in business, with many companies looking to track their carbon emissions and reduce them. Carbon accounting offers an effective way for businesses to measure their environmental impact and understand where they need to take action to cut their carbon footprint.
Carbon accounting startup uses technology to track and report on carbon emissions. Therefore, it helps companies and authorities understand their carbon footprint better. With a better understanding, they can take appropriate measures to reduce it.
In addition, the data on carbon emissions is crucial for climate finance. It helps raise money for projects that will help mitigate or adapt to climate change. This includes investments in renewable energy, energy efficiency and sustainable agriculture.
Many carbon accounting start-ups are already making a difference. With the right support, they can play an even more important role in the fight against climate change.
The Carbon Accounting service is expanding rapidly
There are several approaches to carbon accounting, and startups are trying them out with different technologies. Some startups are keen to develop software to help companies track their emissions. Still, others are working on hardware solutions.
There is great interest in carbon accounting from the financial sector. Investors are keen to find ways to support carbon accounting startups and make sure their investments are put to good use. In addition, investors are increasingly looking for innovative solutions to measure emissions in more accurate ways.
As technology advances, carbon accounting services reach more companies and organizations. The value proposition of carbon accounting is becoming more and more clear as companies realize the importance of understanding their environmental impact. With the right support, these startups can become game changers in the fight against climate change.
