In this episode, we talk to Tom Duncan, the founder and CEO of Earthbanc, the world’s first data-driven carbon and investment platform, helping solve climate change profitably.

Mark Carney, the former governor of the bank of England, and the UN Special Envoy on Climate Action and Finance estimated that the voluntary carbon market will grow a $100 billion market. All of those carbon removals and reductions are going to need finance, monitoring, reporting and verification. There is a huge market opportunity for fintech enablers such as Earthbanc.

Earthbanc provides an end-to-end solution for carbon project developers who need finance and for businesses that need to purchase their carbon reductions from projects whose credibility is supported by data.

In this episode, we covered many topics, such as voluntary and regulated carbon markets, carbon offsetting, fundraising tips for climate tech startups, and more. Here are some highlights:

Due to the carbon emission load existing in the atmosphere and the continuous deforestation, unsustainable farming, and emission-heavy supply chains, the earth is likely to hit the 1.5-degree temperature rise fairly quickly. For businesses that cannot decarbonize their supply chains immediately due to a lack of technology or cost-effective options to do so, purchasing carbon offsets is the next best thing. It is part of a balanced rational approach companies can take while they work to decarbonize their energy supply.

Reforestation projects require someone to fly out to a remote forest and get the measuring tape out to assess every tree. It is labor intensive and expensive. AI-based technologies can reduce the costs of credible carbon measurement in landscapes through satellite imagery.

In voluntary carbon markets, credits are verified every five years. During this time, a forest can be illegally logged or burned. With satellite imagery, projects can be monitored continuously. This can ensure that climate claims are backed by real data, and are verifiable and credible, especially in the light of the anti-greenwashing clause in the European Sustainable Finance Disclosure Regulation.

Entrepreneurs who want to get involved in climate tech should look for unsolved problems in their region that they can tackle. This could range from transition to renewables and storage to  retrofitting buildings to be more energy efficient. Find real blockages, whether they are technical, regulatory, capacity building, or awareness-related, and map them out to design your climate tech startup that can solve these problems.

More and more investors want to know your impact on the triple top line, they want to see if the business is not only profitable but also good for the planet and people. Founders should research which metrics showcase their impact most accurately and communicate those metrics in an effective manner. Focusing on the triple top line makes the business more attractive as a whole for investors looking to put their money in companies that have a positive impact on the world and are not just profit-seeking enterprises.

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Credits:

Intro-outro song "Sparks" by Ian Preece