The startup, Pledge, raised $4.5 million to develop a carbon measurement and removal API. Pledge claims that by integrating the Pledge API, businesses will be able to measure and mitigate their shipments, rides, deliveries, or journeys to achieve carbon neutrality.
Its platform will allow businesses to acquire a fraction of a carbon credit (akin to ordinary investors purchasing a fraction of a stock). This also provides access to balanced portfolios comprising various methodologies and geographies (similar to an ETF).
Pledge aims to provide clients with options for adding offsets to their transactions in industries such as freight forwarding, ride-hailing, travel, and last-mile delivery.
With the impending climate disaster, many businesses want to do their part. However, asking customers to “offset the CO2 emission of this delivery” is a big step. There is relatively little openness when it comes to carbon offsets.
According to Pledge, its emissions calculations will adhere to global standards such as the GHG protocol, the GLEC framework, and the ICAO methodology, as well as ISO standards.
Furthermore, smaller businesses seek to acquire high-quality carbon credits while calculating their impact at the product, service, and transactional levels, and be able to purchase a fraction of a carbon credit.
The carbon credit industry was valued at $300 million in 2018. It is now at $100 billion, with some experts expecting it to top $22 trillion by 2050. Many believe carbon offset growth is due to COP26 and Paris Agreement deadlines.
As companies and governments look to find ways to address climate change, what Pledge is doing can help make the carbon market more accessible. And when programs – such as carbon credits – become more accessible, we can all be a part of the solution.