BeZero Carbon Secures US$32m Series C Funding
Global carbon ratings agency BeZero Carbon has successfully secured US$32m in a Series C funding round. This financial boost is set to propel the UK-based firm’s expansion globally.
Leading this funding endeavour is GenZero, a Singapore-based firm specialising in decarbonisation investments. Other participants in this round include Japan Airlines, the Translink Innovation Fund, and previous investors such as EDF Pulse Ventures, Hitachi Ventures and Intercontinental Exchange (ICE).
This substantial sum, supported by a diverse group of investors, underscores the potential BeZero Carbon has in the burgeoning field of sustainability.
Now, let’s delve into what BeZero Carbon does and its importance on a global stage.
Revolutionising Carbon Markets
Founded in 2022, BeZero Carbon addresses a significant gap within the carbon markets: the inconsistency between the climate impact of carbon projects and their pricing metrics. BeZero’s ratings platform utilises an 8-point scale to evaluate project quality and risk, thereby establishing a benchmark for pricing premiums in the market.
"When we launched, there was no correlation between the climate impact of a carbon project and the price of a carbon credit," says Tommy Ricketts, CEO and Co-Founder of BeZero Carbon. "Now, every incremental notch on our rating scale commands an average 40% price premium."
The platform provides ratings, data, and scientific analysis for over 480 carbon credit projects and boasts more than 100 corporate subscribers worldwide, including large players like UBS, Sumitomo, Emirates NDB, Equinor and Woodside Energy.
It extends its reach across more than 40 platforms, including Bloomberg, and operates in over 30 countries.
Future Plans for Expansion
The newly acquired funds will catalyse BeZero’s expansion in additional markets. Particularly, the company plans to broaden its ratings coverage to domestic and sovereign compliance markets, as well as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
This expansion aligns with the increasing reliance of organisations and governments on carbon markets to achieve net zero emissions.
According to BeZero, the potential growth to a US$100bn carbon market could support an astounding 17 million jobs globally and contribute around US$700bn annually towards climate initiatives.
Focused on scaling its data and analytics offerings, BeZero intends to enhance automation through Artificial Intelligence applications.
Sebastien Cross, Chief Innovation Officer and Co-founder, highlights the growing importance of their ratings in global carbon markets. “Our ratings are quickly becoming a key part of global carbon market infrastructure,” he states, emphasising the role they play in enhancing market integrity.
The Strategic Role of Singapore
BeZero’s strategic decision to amplify its presence in Singapore reflects the city-state's role as a leader in carbon market innovation. Sebastien has temporarily relocated to Singapore, underpinning the firm's commitment to expand in the region.
“Singapore is a world leader in innovating and nurturing carbon markets,” he explains. This sentiment is echoed by Frederick Teo, CEO of GenZero, who believes in BeZero’s potential to foster transparency and inspire confidence within the carbon markets.
As part of this vision, the aviation industry, including stakeholders like Japan Airlines, is turning to carbon markets to mitigate its environmental impact, seeing significant value in BeZero’s contributions.
"We believe BeZero’s carbon ratings enhance the transparency and reliability of the carbon market, attracting greater capital and broader participation," says Takao Suzuki, Executive Officer and Senior Vice President for Innovation at Japan Airlines.
The funding is also seen as a significant affirmation of the UK's green technology landscape, positioning BeZero Carbon as a crucial player in global sustainability efforts. Baroness Gustafsson OBE, the UK’s Minister for Investment, sees this investment as a “huge vote of confidence” in the sector and a vital step toward achieving net zero goals.
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