Temasek, Singapore’s sovereign wealth fund, along with Toyota, led the $21 million Series A funding round for climate biotech company Living Carbon that seeks to improve the ability of trees to absorb carbon.

Living Carbon is a public benefit company aiming to balance the earth’s carbon cycle using plants, particularly photosynthesis-enhanced trees. It engineers super trees that grow much faster and sequesters more CO2 than regular trees.

Founded in 2019, the climate tech company said its first product, a hybrid poplar tree, can capture up to 27% more carbon. Maddie Hall, CEO and Co-Founder of Living Carbon said: 

“We’re excited to close our Series A and continue to make progress on large scale carbon removal using plant biotechnology…Photosynthesis enhancement increases biomass rather than yield so is better suited to carbon markets, where success is measured by how much carbon is locked away…”

Living Carbon $21M Series A Round

The San Francisco-based firm has raised $21M in a Series A funding round led by Temasek and backed by largest automaker Toyota. The round also has participation from Lowercarbon Capital, Felicis Ventures, and other strategic angels. This makes the total funding raised to $36 million. 

The biotech firm said it will use the money to grow its team and expand its work on bio-engineered climate solutions. It will also spend the funds to produce up to 5 million super trees saplings and fund research of new products. And that’s despite criticism over possible unintended consequences of genetically tweaking trees.

Non-profit campaigners like “The Campaign to Stop Genetically Modified Trees” oppose the idea. They said in a report that doing so may have an impact with “unpredictable, uncontrollable and irreversible nature”. Tree pollen and seeds cannot be contained.

But earlier this year, Living Carbon released a paper showing the huge potential of biotechnology in helping stabilize the climate. 

Living Carbon Biotech: Photosynthesis Enhancement 

The carbon sucking abilities of trees are critical to the world’s efforts to limit global warming. But the rate of deforestation continues to increase, hitting record high in the Amazon last year.

There are many ways to enhance carbon capture in plants. These include increasing resistance to disease and drought, salt tolerance, decomposition resistance, and photosynthesis enhancement.

While most efforts focus on protecting forests or regrowing them, Living Carbon is tweaking the genetic code of trees so that they grow quicker while locking away more CO2. 

Photosynthesis-Enhanced Sapling

Left: hybrid poplar seedling with photosynthesis enhancement trait. Right: control hybrid poplar seedling. Source: Living Carbon

As shown in the image above, a photosynthesis-enhanced seedling (left) is taller than its controlled counterpart (right). 

The firm’s initial focus is two-fold:

Improve carbon capture in trees via more efficient photosynthesis
Improve carbon storage through decay-resistant wood, slowing the release of carbon through decomposition

Boosting Carbon Capture in Engineered Super Trees

The biotech firm’s research shows that enhancing photosynthesis can boost biomass accumulation in trees by 53% more than control plants. 

Biomass accumulation is a strong indicator of carbon assimilation, with about half of biomass being stored carbon. 

As shown below, event A (hybrid poplar in green bar) has significantly higher biomass production in all plant tissue types, at both fresh weight and dry weight levels. 

Biomass Production in Hybrid Poplar Vs. Controlled Plants

The study also revealed, in a world first, the potential to capture about 27% more carbon.

More biomass and faster growth means more carbon capture.

Living Carbon’s biotechnology is an example of how engineering can work together with nature’s ability to capture and store carbon. The company’s use of biotech in trees shows how this can be a scalable and viable solution to the climate crisis.

The biotech firm’s photosynthesis-enhanced trees offer opportunities for nature-based carbon removal. By planting these trees and locking away more carbon, landowners can generate carbon credits that they can sell to entities seeking to offset their CO2 footprint.

Lisa Coca, Climate Fund Partner at Toyota Ventures, commented: 

“The voluntary carbon credit market is on track to exceed $50 billion by 2030… Living Carbon’s synthetic biology platform has the potential to fill the gap between supply and demand by leveraging the powerful combination of proven nature-based solutions as a carbon sink and genetic engineering to deliver high-quality carbon credits to the market.”

Living Carbon is ramping up production of its biotech hybrid trees. It’s on track to produce 4-5 million seedlings throughout the U.S. in 2023-2024. The seedlings will be available for companies to buy to reduce their emissions.

The firm is partnering with landowners to develop carbon projects in Pennsylvania and Georgia. With a focus on the U.S. market first, they aim to double annual acreage. 

Living Carbon will plant 60,000 seedlings in February and has sold out the carbon credits for them for 2023. But they’re also doing pre-sales for the next two years. 

IMPT closed a deal to buy carbon credits worth US$54 (€50) from Polygon blockchain-based marketplace Thallo.  

IMPT is a global carbon-offsetting ecosystem that connects brands to individuals and businesses looking to cut their carbon footprint. Thallo uses blockchain technology to make it easier for buyers and sellers of carbon credits to find each other.

The deal will see IMPT buying carbon credits from Thallo with an estimated value of US$54 (€50) over 10 years. 

IMPT Sourcing Tokenized Carbon Credits from Thallo

Using the current market carbon prices, the carbon credit deal will help offset around 12 million tonnes of carbon over ten years. It’s equal to the annual CO2 footprint of about 2.6 million people. 

This partnership is a major milestone in developing the IMPT platform that will allow community members to convert their native tokens into carbon credits. 

Remarking on the agreement, IMPT CEO Denis Creighton said:

“We are thrilled to partner with Thallo to source high-quality tokenized carbon credits for our protocol…Putting these credits into the hands of our community is the next step in realising our vision of building a global network of people who want to play their part in combating climate change by taking small actions in their everyday lives.”

The agreement involves an initial 3-year purchase of €3.6 million worth of carbon credits. Then there’s a Memorandum of Understanding for a long-term partnership over 10 years. 

IMPT will purchase carbon credits from Thallo’s diverse portfolio of project developers. These include both carbon removal and avoidance projects from 5 different continents. Each project helps reduce carbon emissions to fight climate change. 

In a report last year, Thallo combined carbon project developer insights to identify challenges to scaling the voluntary carbon market. These include, in particular, verification delays that can bring 2.6 billion in losses to developers. 

Bridging Unretired Credits Using Blockchain

The live, unretired credits will be bridged onto the Polygon blockchain via Thallo’s 2-way bridge from existing carbon registries. These include the Colombian BioCarbon Registry. 

Thallo’s Two-Way Carbon Bridge allows companies and individuals to move carbon credits on and off the blockchain. This is crucial to avoid double accounting and preserve the integrity of the carbon credit.

This blockchain technology enables easy buying, selling, and retiring credits while ensuring transparency and traceability.

Information about the project, vintage, serial numbers, etc. are stored on-chain in the Thallo Bridge. This enables anyone to access this data at any time due to the public and distributed nature of the blockchain. And that’s even if the registry system is not available.

The end goal of the bridge is to be a public, transparent ledger of all events related to the issuance and retirement of tokenized carbon credits.

Thallo’s Two-Way Carbon Bridge Process

The deal with IMPT is the first use of Thallo’s ‘Bridging-as-a-Service’ product offer. It allows Web3 companies to integrate carbon credits directly into their own infrastructure. It also helps Web2 companies by allowing e-commerce customers to offset the emissions of their purchases.

Thallo Co-Founder and CEO, Ryan Gledhill said:

“Thallo’s ground-breaking infrastructure enables voluntary carbon market innovators to access an ever-increasing number of registries with a simple integration model…The market is one of the world’s most impactful tools to combat climate change.”

He added that IMPT’s innovative model will continue to scale alongside Thallo as they attract more suppliers in 2023 and beyond.

Is offsetting carbon worth it? This question has never been more controversial right now and it deserves a good answer, especially if you’re into carbon offset credits.

If you shop online, take flights, or use ride-hailing apps like Uber, you’ve likely noticed the option of including carbon offsetting when making your purchases. Many companies allow consumers to voluntarily offset the carbon emissions of their rides, flights, or product deliveries by paying for them out of their own products.

But is there an incentive for companies to offset carbon emissions themselves?

Through initiatives like carbon credits, companies can invest in emission reduction projects that will help them move towards carbon neutrality.

So, does offsetting carbon worth it? Do carbon offsetting projects actually do what they say they will? And what else can companies gain by offsetting their carbon emissions?

Before we give you all the answers, let’s get back to basics first by explaining what carbon offsetting is all about.

What is Carbon Offsetting?

Each person on this planet has a carbon footprint, but the size of that footprint is dependent on the actions we take on a daily basis. A carbon footprint is the total amount of greenhouse gases generated by an entity, such as a person, company, event, or place.

The most powerful greenhouse gases are carbon dioxide, methane, and nitrous oxide. But carbon dioxide is the most significant contributor to climate change. That’s not because carbon dioxide is more destructive than the others, but because it’s the most common gas generated by human activity. 

That is why there has been a bigger push and focus on carbon offsetting. It’s true that individual activities like daily transportation, diet, and household energy consumption have a part to play. Yet, the largest contributors of carbon dioxide are companies.

In fact, according to The Carbon Majors Database (published by the Carbon Disclosure Project), 71% of the world’s industrial emissions over the last 50 years were produced by just 100 companies. That doesn’t mean individual decisions don’t still have tremendous power, but it’s especially important for companies to consider offsetting carbon.

Carbon offsetting provides gives individuals and companies with an accessible means of offsetting their emissions. One way is by investing in carbon reduction projects such as tree planting initiatives. 

Companies can seek out specific environmental projects like this on their own and partner with them or buy carbon credits from a carbon credits broker, who will invest in offsetting programs on your behalf. If you have a specific cause you’re particularly passionate about, you can channel your carbon-offsetting investment directly to that.

Now that we’ve covered what carbon offsetting is, let’s look at whether carbon offsetting is worth it. What are the benefits?

Carbon Offsets Help Reduce Climate Emissions

We are all aware that the global temperature is rising, along with sea levels. The evidence for climate change cannot be argued, and human emissions have the biggest impact, contributing to 90% of all carbon dioxide emissions. Most people go about their daily business without giving climate emissions much thought.

But what if they cost money?

We bet that people would think twice about their actions if they had to pay for the carbon they emit. Carbon offsetting programs like carbon credits help reduce climate emissions by putting a price tag on emissions, encouraging corporations and companies to implement emission reduction initiatives (or pay the price!).

And while carbon offsetting is still, for the most part, voluntary, there is a global push to reduce emissions. And with that push will come more regulations.

Depending on the regulatory efforts of countries, research from BloombergNEF estimates the cost of carbon offsets could increase by up to 3000% by 2029.

If that isn’t a reason for companies to get the jump on emission reduction efforts, then what is?

Carbon Offsetting Channels Funds to Conservation and Sustainable Development

Carbon offsetting enables companies to tap into and support some incredible conservation and sustainable development projects that positively impact our planet.

Companies can choose projects that align with their values and have the most significant carbon reduction impact. As the number of carbon offsetting and carbon credit programs continues to grow exponentially, their creditability is of utmost importance.

For those wanting to work directly with carbon offsetting organizations, ensure they are accredited by a third party, such as the International Carbon and Offset Alliance (ICROA), American Carbon Registry, and Climate Action Reserve.

Some examples of projects that offset carbon include waste to energy, reforestation, renewable energy (wind, hydro, solar), kelp forests, or avoided emissions projects.

Boosts Company Reputation

Identifying as a carbon-neutral company can boost your reputation as a positive, environmentally friendly, and purpose-oriented corporation.

Reputation is essential for the success of any company or business.

Companies should all adopt CSR (corporate social responsibility), which shows consumers that they operate transparently. And with increased global awareness around sustainability and climate change, consumers expect companies to operate sustainably and responsibly.

By doing so, and being transparent about carbon offsetting practices, you can expect a nice reputation boost! And this reputation boost makes your company more likely to attract the attention of potential consumers and media outlets. That leads us to the next benefit.

Gives Companies a Competitive Edge/Advantage

As previously mentioned, companies operating sustainably is no longer just an added bonus; it’s an expectation. So, are you implementing carbon reduction practices, or at the very least investing in carbon offsetting? If not, then you will soon fall behind any competitors who do.

Consumers who have the choice between a carbon-neutral company and one that is not will inevitably choose the more eco-conscious company. A recent study from SmartestEnergy revealed that 4 of 5 people would choose companies with sustainable environmental practices over those without.

To keep a competitive edge, companies will NEED to participate in carbon offsetting. And that’s regardless if it’s on a voluntary basis or not.

Is Carbon Offsetting Sustainable Long-term?

Some are concerned that carbon offsetting is not an effective long-term solution to climate change. And they may be right.

But the true goal of carbon offsetting isn’t to be the only solution for all of time. What carbon offsetting provides a reinforced company commitment to sustainability and sustainable practices.

Even with companies making no changes to their operations, they’re still investing in projects that will improve how the world operates. But inevitably, companies will be forced into operating more efficiently and reducing their carbon emissions because of carbon offsetting.

The price for carbon offset credits will continue to rise, and while they may be mostly voluntary at this point, it won’t be long before it’s legally mandated.

There are already many mandatory international and regional carbon reduction schemes, such as the California Carbon Market and the Emissions Trading System (ETS) in Europe. And we will see more of them in the coming years. Because of this, companies will be accountable to strive for emission reduction before buying carbon offsets becomes a mandate.

Are Carbon Offsets a Tool for Greenwashing?

Another common misconception about carbon offsetting is that it has the potential to be a tool for greenwashing. 

The ability to offset carbon emissions enables companies to claim they are carbon neutral without actually having to update their processes to reduce operational carbon emissions. And this could mislead consumers to believe that carbon offsetting is not worth it.

While that concern is valid, the reality is that few companies will fork out the money for carbon offsets or carbon credits if they have no concern for the planet or their impact. Most companies use carbon offsetting as a tool for positive change. And that’s while they work on implementing new and more efficient practices.

For firms that invest in carbon offsetting without any intention to make operational changes, they will continue to pay a higher premium for their choices. And that money will go directly into world-changing projects.

How Can You Choose the Best Carbon Offsetting Solution?

Choosing the best carbon offsetting solution can be challenging. Voluntary programs are regulated mainly by private entities (with some not regulated at all).

Can we actually trust private entities like Verified Carbon Standard and Climate Action Reserve to connect us with legitimate programs and missions?

For now, it’s the best we have. But as carbon offsetting continues to become legally mandated, we expect that government entities will be the ones to regulate them. 

In the meantime, initiatives like The Voluntary Carbon Markets Integrity Initiative have developed a Claims Code of Practice. This initiative is to improve the integrity of carbon offsetting programs, verify climate claims and provide guidance to companies wanting to buy carbon credits.

Initiatives like this can benefit companies that are new to the carbon offsetting game. But your own research will be a key asset in the hunt for a program that aligns most with your offsetting needs.

There are carbon offsetting programs that are:

Crypto-based
Nature-based
Technology-based
Energy and transportation-based

All these sectors require support and have impactful and reputable carbon-offsetting initiatives worth investing in.

So, Is Carbon Offsetting Worth It?

The only way to be carbon neutral is through carbon offsetting. It’s not possible to produce zero carbon. So carbon offsetting is the best way to decrease our actions’ negative impact on the environment.

Emissions reduction should always be at the core of everything we do as individuals and as companies. But carbon offsetting will always be worth it and can take us to carbon neutrality that we all should be striving for.

If you’re unsure where to begin your carbon offsetting journey, purchasing carbon credits is always a good place to start. These credits are then invested into verified and thoroughly researched carbon offsetting programs.