Consolidation begins to hit the carbon credit market | TechCrunch

"Carbon management startup Carbon Direct is buying another carbon credit startup, Pachama, the companies announced today. Pachama laid off around 20 employees this summer as voluntary carbon markets softened. The company had attracted investments from a range of prominent names, including Amazon's Climate Pledge, Breakthrough Energy Ventures, Lowercarbon Capital, and several celebrity angel investors, including Ellen DeGeneres, Laura Dern, and Serena Williams."

"The carbon markets have been roiled by uncertainty in the last few years, and not all of it has been the result of political whiplash in the U.S. and elsewhere. Voluntary carbon markets have come under fire for falling short of their promises. For example, a major investigation by The Guardian found that more than 90% of one verifier's credits did not actually result in any carbon reductions."

Carbon Direct is buying Pachama. Pachama laid off around 20 employees after voluntary carbon markets softened. Pachama had attracted investments from Amazon's Climate Pledge, Breakthrough Energy Ventures, Lowercarbon Capital, and celebrity angel investors including Ellen DeGeneres, Laura Dern, and Serena Williams. Pachama had raised $88 million while Carbon Direct raised $60.8 million; deal terms were not disclosed. Pachama focused on nature-based carbon credits from forest restoration or preservation. Carbon Direct provides carbon market advisory and accounting, helping companies track emissions and vet credits. Voluntary carbon markets face uncertainty, scrutiny over credit integrity, and questions about additionality and threatened forests.

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