Carbon technology platform Fairatmos has announced that it received $4.5 million in seed funding that it would use to strengthen its platform.
The seed round was led by Go-Ventures and Kreasi Terbarukan TBS, the investment arm of energy companies Toba Bara Sejahtera. It was also participated by Vertex Ventures Southeast Asia and India and prominent angel investors.
Fairatmos, a Jakarta-based firm, plans to use the new investments to strengthen its platform by providing new digital innovations in the carbon market and outreach to more communities and project developers.
“Developing high-quality, scalable carbon sequestration projects is not an easy task. Despite the abundant potential for Indonesia to become the carbon sink of the world, historically, there have been few projects in Indonesia, as there are many technical barriers and upfront costs that make it challenging for communities and organisations to participate,” said Fairatmos CEO Natalia Rialucky.
Part of the funds will be also be allocated to growing the team across multiple functions, including remote sensing analytics experts and product and engineering roles.
Fairatmos that was founded in 2022 envisions to builds an innovative solution that will help project developers to design carbon sequestration projects, verify carbon credits, and connect with companies and individuals seeking to buy or finance carbon credits to reach their net-zero goals.
Its operation is guided by the mission to improve the livelihood of smallholder communities through additional income from involvement in carbon projects and reduced degradation of their surrounding ecosystem.
And in the future, Fairatmos plans to connect developers with companies and individuals who seek to counterbalance their carbon emissions as part of their net-zero goals.
Under the 2015 Paris Agreement, a total of 196 countries have endorsed the goal of maintaining global temperature rise by 1.5c. This means cutting greenhouse-gas emissions by 50 percent by 2030, Rialucky said.
Also, about 702 companies globally, including Indonesia, have already pledged their net zero targets, a vast growth in the previous year.
Rialucky said that one way for companies to meet their target is to counterbalance their emission via carbon credits.
Fairatmos, for its part, has so far gained good traction and has worked with over 40 project developers across several carbon sequestration projects in mangroves, forests and agriculture. It is also working to help the Indonesian government comply with regulatory guidance in developing carbon projects.