Energize Ventures leads a $55 million Series B investment in Patch, a company developing digital infrastructure for carbon markets, aiming to address the skyrocketing demand for carbon credits as corporations pursue net-zero goals.

Target Information

Energize Ventures has led a $55 million Series B investment in Patch, a pioneering company that provides an API-based digital infrastructure for carbon markets and other regulated emissions. This investment marks Energize's second foray into carbon market infrastructure, highlighting the critical role that Patch plays in facilitating carbon credit transactions. The funding round also included notable investors such as A16z, Coatue, Version One Ventures, and Schneider Electric, with Energize partner Tyler Lancaster joining Patch's board of directors.

Industry Overview

The demand for carbon credits has skyrocketed, driven by the urgent need to meet global climate targets set by the Paris Agreement. Research indicates that negative carbon emissions are essential for maintaining the global temperature rise below 1.5 degrees Celsius. Corporate entities are increasingly pursuing net-zero goals, leading to a substantial rise in the demand for carbon credits to enable reduction, removal, and avoidance of greenhouse gases.

From 2019 to 2020, the issuance of carbon credits through domestic crediting mechanisms saw a remarkable 25% growth. Furthermore, researchers anticipate that demand for these credits may expand by at least 15 ti