An Indonesian company hopes to make it easier for local communities to develop carbon sequestration projects – raising money and saving their environment at the same time
Spotted: As countries around the world announce net-zero targets, they are also making organisations accountable with ESG (environmental, social, and governance) reporting requirements. For example, in the EU, companies with over 500 employees must comply with the EU Non-Financial Reporting Directive (NFRD), which requires disclosure of social and environmental issues in annual reports. And as of 2020, in Indonesia, all listed companies are also required to publish Sustainability Reporting.
These requirements have opened up opportunities for companies like Indonesian greentech firm Fairatmos. The startup helps companies reduce environmental risk by providing a carbon calculator, carbon credit marketplace, and access to experts. Its goal is to democratise the access to carbon markets by making them more available to small and medium-sized enterprises.
Fairatmos’s platform makes it easier for communities and projects to design and verify carbon projects. It offers everything needed to develop carbon credits and connect new environmental projects with institutional and individual investors looking to offset their emissions to meet ESG goals. The startup has already worked with more than 40 projects, including those involved in carbon sequestration in mangroves, forests, and agriculture.
Fairatmos recently raised $4.5 million (around €4.2 million) in a seed funding round led by Go-Ventures, with participation from Vertex Ventures Southeast Asia and India. Aditya Kamath, Partner at Go-Ventures says: “With over 126 million hectares of forest cover, Indonesia is globally known as the ‘world’s lungs’. There is huge carbon market potential in Indonesia, with $565 billion worth of carbon economic value.”
Platforms like Fairatmos are becoming more common, as fintech companies realise that individuals and local communities are an untapped source of opportunity for carbon projects. Some ideas spotted by Springwise include a platform that helps farmers attract investment for regeneration projects, and a venture studio that is leveraging technology to support reforestation.
Written By: Lisa Magloff