7 questions for 1 startup: DeCarbon8+

Hello! This is Sergei, editor of Startupt.co. Welcome to this week's '7/1' Startupt newsletter. We’re excited to spotlight DeCarbon8+, an innovative platform transforming the carbon credit market. By making carbon credit trading simple and accessible, DeCarbon8+ is empowering municipalities, industries, and farmers to participate in carbon sequestration and environmental sustainability.

In our feature, 7 Questions with José Pedro Simões, the CEO discusses how DeCarbon8+ supports farmers and industries in certifying carbon credits, ensures project validity, and promotes local economies. Discover their strategies to make carbon trading accessible and environmentally sound.

This edition also covers the carbon market landscape, highlighting EU carbon price trends, supply chain decarbonization challenges, and efforts to unify carbon market standards. With regulatory changes and new technologies, the market is evolving rapidly, presenting unique opportunities.

Check out our Spotify playlist, Music to go deep, featuring environmentally conscious artists like Joni Mitchell and Marvin Gaye, whose music raises awareness about sustainability and climate issues.

Our detailed pitch deck summary of DeCarbon8+ outlines their value proposition, revenue streams, market goals, and competitive edge. With a skilled team and a commitment to green innovation, DeCarbon8+ is poised to make a significant impact in the carbon market.

We invite you to share your news with us to keep our community informed. Don’t miss our regular Thursday newsletter for the latest updates in Portugal’s startup scene.

Thank you for being part of the Startupt community. Let’s drive innovation and sustainability together.

📊 Market size. Quick look

EU Carbon Prices Outlook

The EU's carbon prices are set to average €71 per ton ($76) in 2024, down from €85 last year. BloombergNEF forecasts a sharp increase to €149 per ton by 2030, driven by regulatory pressures and the adoption of low-carbon technologies. For investors, carbon markets offer a hedge against high interest rates and inflation, making them an appealing option.

Voluntary Carbon Market: At a Crossroads

Carbon offset prices depend heavily on the establishment of robust standards. Without rigorous definitions, credits could trade at just $13 per ton by 2030. However, if high-quality standards are set, prices might reach $20 per ton. In a scenario focused on carbon removals like direct air capture, prices could surge to $146 per ton by 2030.

The voluntary carbon market (VCM) faced significant turmoil in 2023, complicating purchase decisions for buyers. BloombergNEF highlights a possible $1.1 trillion valuation for the VCM or a potential market collapse. A middle path might see the market continue its slow progress.

Supply Chain Decarbonization Challenges

Many businesses struggle with supply chain decarbonization. Bain & Company reports that 24% of supply chains are off track for Scope 1 and 2 targets, and 35% may miss Scope 3 targets. Despite this, Bain suggests that a strategic approach could still help companies reduce costs and enhance resilience, even though 60% lack a feasible strategy for Scope 3 emissions.

Towards Unified Carbon Market Standards

Despite last year’s challenges, carbon markets remain central to net-zero strategies. Key players like ICVCM, VCMI, and SBTi are collaborating to rebuild market confidence and streamline the process for buyers. Research shows that companies buying carbon credits decarbonize faster, challenging the greenwashing narrative.

In 2024, these collaborations are expected to deliver on COP28 promises, providing clear plans and potentially stabilizing demand. This could bolster confidence among project developers and investors, essential for scaling supply.

In summary, the carbon market is poised between growth and challenge, with the development of universal standards and the merging of voluntary and regulated markets being key to future stability and pricing dynamics.

💡 DeCarbon8+'s Pitch deck summary

Location: Lisbon

Overview:

DeCarbon8+ is revolutionizing the carbon credit market with its innovative platform that facilitates the management and transaction of carbon credits. Our platform is designed to be user-friendly, providing municipalities, industries, and farmers with a straightforward method to engage in carbon credit trading. By simplifying the process, we aim to increase participation in carbon sequestration activities, thereby promoting environmental sustainability on a broader scale.

Value Proposition:

• More Investment in Green Initiatives: DeCarbon8+ attracts more capital towards eco-friendly projects, enhancing the overall green investment landscape.
• Enhanced Soil Health and Productivity: By integrating smart farming tools, we help farmers improve soil quality and agricultural productivity.
• Neutralization of Carbon Emissions: Our platform aids in offsetting carbon emissions, contributing to global efforts in combating climate change.
• Direct Purchase of Carbon Credits: Users can easily purchase carbon credits directly through our platform, making the process hassle-free and efficient.
• New Revenue Streams for Farmers: Farmers gain an additional income source by participating in carbon credit trading, incentivizing sustainable farming practices.

Revenue Streams:

• Commissions from Transactions: We take a 4% commission on each transaction, ensuring a sustainable revenue model.
• Consultancy Services: Offering expert advice and consultancy to enhance users’ carbon management strategies.
• Subscription to Carbon Farmer’s Club: A membership program providing exclusive benefits and tools to participating farmers.
• Educational Services: Providing training and educational resources to help users maximize their carbon credit potential.
• Smart Farming Tools: We offer advanced tools to improve farming efficiency and environmental impact.

Team:

• José Simões, CEO: Holds an MSc in Animal Science from Instituto Superior de Agronomia (ISA).
• Marco Neto, Technical Advisor: A graduate in Biotechnology from Escola Superior de Tecnologia do Barreiro (IPS - ESTB).
• Efstathia Nikopoulou, COO: A senior student in Soil Science and Agricultural Chemistry at the Agricultural University of Athens (AUA).
• Vittoria Moccagatta, Head of Sales and Marketing: Holds an MA in Theoretical Philosophy from the University of Turin.
• Anabel Millán, P3M: With a PhD in Molecular Biology and Biotechnology from the University of Valencia.
• Mahdi Faghihi, CTO: PhD in Management.

Competitive Advantage:

• Diversified Services and Key Partnerships: Offering a wide range of services and strategic partnerships to enhance platform value.
• Accessibility to Farmers: Ensuring that farmers can easily participate in and benefit from carbon credit trading.
• Global Reach with High Availability of Carbon Credits: Leveraging our extensive network to provide a robust supply of carbon credits worldwide.

🧩 7 Questions with José Pedro Simões

Q: Can you explain how DeCarbon8+ specifically assists farmers and industries in obtaining and certifying carbon credits within your platform?

A: DeCarbon8+ is an online market that allows farmers to place their carbon farming projects for sale, enabling a new source of revenue, while at the same time allowing industries to buy these projects, neutralizing their carbon emissions. It serves as the bridge between the carbon sequesters that are the famers, and the carbon emitters that are the industries.

Q: What steps does your platform take to ensure the accuracy and reliability of carbon sequestration measurements?

A: You first must submit your project that will be pending approval. Our team will carefully review the project, and only after we ensure the validity of the project, will you be able to place those credits on the market for sale.

Q: How does DeCarbon8+ make the trading of carbon credits accessible and beneficial for small-scale farmers?

A: Our goal is to generate a new source of revenue for the farmers, and so we keep a low % of the sale value, with more than 90% of it going to the farmer. Furthermore, the farmer has full control over the price of sale of their credits.

Q: How do you ensure the environmental integrity of the carbon credits traded on your platform?

A: Our team will carefully review the project before allowing those credits to be placed on the market for sale. At any sign of greenwashing the project won’t be approved and the credits won’t be placed on the market. We intend to work with established entities to double validate the validity of the projects, ensuring a double layer of protection against greenwashing.

Q: How does DeCarbon8+ support local economies, and what impact have you seen from the financial support to local farmers through carbon credit purchases?

A: A % of the sales goes to the municipality in which that project was made. By doing this we ensure that we are building bridges between the farmers, the industries, and the local communities, hoping to entice the industries to contribute more to the rural economy where they are buying the credits from.

Q: In what ways does DeCarbon8+ engage with other stakeholders, such as governments or environmental groups, to further its mission of achieving carbon neutrality and supporting sustainable agriculture?

A: We intend to develop workshops and webinars, with other stakeholders as well, to further teach farmers and regular people alike the benefits of sustainable agriculture practices. Our goal is for the common person to be able to understand what carbon credits are, and how they can contribute to the reduction of carbon emissions, by buying products produced by farms with sustainable practices.

Q: Looking towards the future, what are DeCarbon8+'s goals for expansion or improvement in its services?

A: We plan to add several features to our platform to allow a more customizable experience. Furthermore, we want to start the development of carbon measurement sensors, so we can work closer with our partners that are the farmers.

🎧 Music to go deep

Listen on Spotify: Spotify Playlist

That's all for today! See you next week. And don't forget to check your email on Thursday — you'll find a regular Startupt.co newsletter with the most important news about startup industry in Portugal.