Carbon Direct, Inc. raises $60M to expand carbon management

By Carbon Direct | August 24, 2022

Carbon Direct, Inc., a science-first carbon management firm and software provider, today announced a $60 million funding round led by Decarbonization Partners, a partnership between Temasek and BlackRock, and Quantum Energy Partners.

Carbon Direct is the leading carbon management firm working to help its global clients to meet their climate goals by reducing and removing carbon from the atmosphere. The company enables organizations to turn industry-leading carbon science into climate action through its end-to-end carbon management platform.

Carbon Direct is helping lead the industry in creating quality criteria for carbon credits, reducing supply chain emissions, procuring low-carbon fuels and materials, and facilitating large-scale carbon credit and removal procurement. Carbon Direct will use the growth capital to continue investing in its science-based carbon management platform and will continue applying its rigorous science-first approach while expanding its offerings.

“Carbon Direct’s platform turns industry-leading carbon science into action through software and market expertise,” said Jonathan Goldberg, CEO of Carbon Direct. “We are excited to see the growth in net zero commitments from leading companies and governments as well as recent policy momentum. Without scientific expertise, carbon commitments will have far less impact than they could. This investment from Decarbonization Partners and Quantum Energy Partners will help us scale the work we are already performing for industry leading clients.”

The United Nations’ Intergovernmental Panel on Climate Change most recent report states to meet the agreed upon climate targets and to avoid the worst impacts of climate change, emissions from all sectors of the economy must be reduced aggressively while also removing billions of tonnes of carbon from the atmosphere per year by 2050.

“The transition to a net zero reality requires organizations to act boldly in managing their carbon emissions,” said Dr. Meghan Sharp, Global Head of Decarbonization Partners. “Carbon Direct, Inc. brings together a unique combination of science and software, enabling organizations to implement highly effective climate action at scale. We are pleased to support the company’s science-based approach to carbon management and we see a significant opportunity to build on the company’s strong existing momentum.”

“Organizations will need to significantly change how they manage their carbon footprint in order to meet their climate goals,” said Jeffrey Harris who oversees Quantum’s Innovation Fund. “We believe the combination of science and market expertise uniquely positions Carbon Direct, Inc. to enable organizations to operationalize carbon management and have a meaningful impact on climate change. We are excited to support the company’s next phase of growth.”

About Carbon Direct, Inc.

Carbon Direct, Inc. enables organizations to turn industry-leading carbon science into action through its end-to-end carbon management platform. Carbon management is the process through which an organization measures, reduces, and removes their carbon emissions. For it to be effective, both cutting-edge science and commercial expertise need to be applied at every stage of the process.

Carbon Direct is backed by a team of over 30 of the world’s top carbon scientists with expertise in every area of carbon management. Carbon Direct streamlines carbon science through their science-backed software to help leading companies and governments around the world reach their climate goals. Carbon Direct’s work has included establishing quality criteria with Microsoft, delivering millions of durable tonnes for clients, and building a client list that represented nearly 60% of the tonnes transacted in the voluntary carbon market in 2021. Carbon Direct brings this expertise to the World Economic Forum as an Implementation Partner for the First Movers Coalition, where they support sectoral pledges across carbon removal, aviation, shipping, and more. To learn more visit carbon-direct.com.

About Decarbonization Partners

Decarbonization Partners is a partnership between Temasek and BlackRock focused on late-stage venture capital and early growth private equity investing in next-generation companies that provide solutions and technologies to help accelerate global efforts to achieve a net zero global economy by 2050. Decarbonization Partners combines Temasek and BlackRock's expertise in sourcing and underwriting private investments, portfolio and risk management, and sustainable technology and analytics. Decarbonization Partners looks to invest in a wide range of companies that have proven technology but need capital to scale. The partnership targets multiple sectors, including energy, mobility, manufacturing & materials, and the built environment. The partnership reflects BlackRock and Temasek's shared commitment to help build more sustainable and resilient portfolios, while also contributing to consistent, long-term financial returns that benefit their clients and stakeholders.

About Quantum Energy Partners

Founded in 1998, Quantum Energy Partners is a leading global provider of private equity, credit, structured capital and venture capital to the responsibly sourced energy and energy transition & decarbonization sectors, having managed together with its affiliates more than $18 billion in capital commitments since inception. For more information on Quantum, please visit www.quantumep.com.