Sylvera Raises Seed Funding to Improve Carbon Offset Accountability

Sylvera Secures Seed Funding to Enhance Carbon Offset Transparency

U.K.-based startup Sylvera is leveraging machine learning, powered by satellite, radar, and lidar data, to improve transparency within carbon offsetting initiatives. This effort aims to increase accountability and bolster credibility by providing independent ratings for these projects.

Data and Scientific Collaboration

The company’s ratings are founded on unique data sets developed in collaboration with scientists from prominent research institutions. These include UCLA, the NASA Jet Propulsion Laboratory, and University College London.

Recent Funding and Backing

Sylvera has recently obtained $5.8 million in seed funding, led by the venture capital firm Index Ventures. Existing investors—Seedcamp, Speedinvest, and Revent—also participated in this round.

Furthermore, the company enjoys support from leading figures, including current and former CEOs of NYSE, Thomson Reuters, Citibank, and IHS Markit. Sylvera has publicly committed to avoiding investment from companies heavily involved in carbon-intensive industries.

A $2 million research contract from Innovate UK has also been secured.

Addressing a Critical Market Issue

The core problem Sylvera addresses is the current lack of transparency plaguing the carbon offsetting market.

This opacity raises concerns that many projects fail to deliver the promised net reduction in carbon emissions. Instead, some utilize questionable carbon accounting practices, resulting in misleading public relations and ultimately, continued pollution.

Projected Market Growth and Sylvera’s Position

Despite these concerns, carbon offset markets are projected to experience substantial growth—at least a 15-fold increase by 2030—as corporations accelerate their net-zero commitments. Sylvera anticipates this growth will drive demand for dependable, independent data to validate claimed impacts.

How Sylvera Benchmarks Carbon Offsets

Co-founder Sam Gill explains that Sylvera’s technology platform utilizes multiple layers of satellite data to capture project performance data at a large scale and with high frequency.

Machine learning is applied to analyze and visualize this data, alongside thorough analytical work to assess the underlying project quality. This process culminates in a standardized rating, enabling market participants to make informed decisions.

Data Accessibility and Subscription Model

Sylvera provides access to its ratings and analysis data to customers through a web application and an API, offered under a subscription-based model.

A Rating System for Carbon Offsets

“We evaluate two key areas of a project—its carbon performance and its overall ‘quality’,” Gill states. “We assign scores and ratings to projects based on these criteria, similar to how Moody’s rates bonds.”

Assessing Carbon Performance

Carbon performance is evaluated by gathering “multi-layered data” from diverse sources to understand on-the-ground conditions. This includes data from multispectral imagery, radar, and lidar satellites.

“We collect this data over time, process it with our proprietary machine learning algorithms, and analyze how the project has performed against its stated objectives,” Gill clarifies.

Evaluating Project Quality

Project quality is assessed by examining technical aspects, including “additionality”—determining whether the project achieves a better outcome than would have occurred without offset revenue.

A common issue involves forest carbon offsets where landowners had no intention of deforestation. In such cases, the carbon credit is invalid as no actual reduction in emissions occurred.

Additional Quality Factors

Sylvera also considers factors like permanence—the longevity of the project’s impacts—co-benefits—alignment with the UN’s Sustainable Development Goals—and risks—mitigation strategies for both human and natural threats.

Acknowledging Complexity

Gill acknowledges that the process isn’t entirely precise and that risks are often interconnected.

“It’s crucial to assess performance and quality together,” he emphasizes. “Simply achieving carbon goals isn’t sufficient if the project’s additionality is questionable, as the resulting offsets may be less impactful than perceived.”

Industry Perspective

Carlos Gonzalez-Cadenas, partner at Index Ventures, commented on the seed funding, stating: “This is a remarkably capable team with the foresight to establish the first carbon offset rating benchmark. They are providing essential insights into offset quality, facilitating informed purchasing decisions, and enabling post-purchase monitoring and reporting. Sylvera is laying the groundwork necessary to address climate change.”