A London-based carbon procurement and market intelligence tech firm, Abatable, secured $13.5 million in funding from Azora Capital and fully acquired a nature-based carbon credits provider, Ecosphere+.
Founded in 2016, Ecosphere+ seeks to create and build demand for high-impact voluntary carbon credits. The company’s portfolio strategies enable other businesses to take action and integrate carbon credits into their net zero plans.
Operating since 2003, Azora Capital is an investment management and private equity firm based in Spain. It has over €6.5 billion in assets under management (AUM). Azora’s European Climate Solutions private equity strategy supports and provides growth capital to companies that bring decarbonization solutions.
Remarking on the fundraising, Abatable CEO and Co-founder Valerio Magliulo said:
“We are thrilled to have the support of Azora as we accelerate our growth plans to support an increasing number of businesses taking climate action for their hard-to-abate emissions.”
Creating the Largest Tech-enabled Carbon Procurement Platform
Abatable’s carbon procurement platform allows entities to connect and transact with carbon project developers to deliver their ambitious climate goals. The firm’s mission is to help companies deal with their hard-to-abate carbon emissions in two ways:
- Execute science-aligned carbon procurement programs
- Deliver long-lasting and measurable environmental and social impact beyond value chains
Carbon credit buyers can pick from a selection of pre-built thematic portfolios or create their own to align with climate goals. Here’s an example of a thematic portfolio in Abatable carbon credit marketplace:
Its tech platform helps bring transparency and efficiency to the voluntary carbon market (VCM). It also gives entities access to 2,000+ project developers across different project types and geographies while providing them effective ways to buy carbon credits.
By acquiring Ecosphere+, Abatable will be expanding its services to a wider reach of corporate clients. The company will also benefit from Ecosphere+’s proven track record and data, transacting over 45 million carbon credits.
Ecosphere+ is a provider of nature-based carbon credits with projects focusing on reforestation and reducing deforestation while supporting local communities. The company offers solutions that turn carbon markets into effective financing tools needed in the race to net zero.
Abatable said that they’re “excited to combine their [Ecosphere+] access and expertise with our digital solutions to establish the largest tech-enabled carbon procurement platform.”
For Ecosphere+, the new team up will further propel their joint reach and impact in scaling action for climate, nature and people.
Driving Climate Solutions at Critical Times
The $13.5 million investment from Azora is the second deployment coming from its European Climate Solutions private equity strategy. It specifically targets companies that provide decarbonization solutions for the European economy.
The deal comes at a critical time for the VCM that can help speed up its development through a trusted mechanism for climate solutions.
Here’s how Abatable platform works for corporates with complex carbon procurement needs in 7 steps.
- Define procurement requirements
- Identify matching carbon projects
- Submit a Request for Proposal
- Leverage Abatable’s quality insights
- Construct the optimal portfolio
- Use standardized procurement contracts
- Communicate and monitor your impact
Boom and Busts
The VCM is at a critical point. There has been a boom in market size and interest from various organizations across industries. Projections show that the market will grow to reach $50 billion by 2030 and a 100% increase by 2050.
But the VCM also received serious busts about its integrity. There are valid concerns on the quality of nature-based carbon credits verified by major standards.
Meanwhile, the carbon markets need to scale to ensure that net zero is possible and the window of opportunity is closing. Abatable is working with businesses around the world across industries, supporting high-impact projects that produce high-quality carbon credits.
The company helps businesses source, vet, and structure their long-term carbon procurement programs. The goal is to help deliver measurable carbon reductions along with environmental and social impacts.
Apart from the Ecosphere+ acquisition, the funding from Azora will let Abatable reach out and support more entities achieve their net zero plans.