

Carbon Credits: A Crisis, a Comeback, and the Cleantech Reboot
When Nature Communications dropped a headline-grabbing report at the end of 2024, estimating that just 16% of carbon credits actually led to real emission reductions, it sent a ripple – or more like a wave – through the world of climate finance. For critics, it felt like the final confirmation of what they'd long suspected: that the global carbon market was less about reducing emissions and more about creative accounting. Investor confidence, which was already on shaky ground, took a fresh knock.
A Reset at COP29
Let’s be honest, the international carbon credit system had been limping along for a while. From confusing standards and double counting to outright fraud, the credibility problem was clear. So when that damning 16% figure hit the news, the response was swift: pessimism, panic, and a flurry of LinkedIn think-pieces. But the timing turned out to be oddly fortuitous.
Just weeks after the Nature report, COP29 in Baku delivered an unexpected breakthrough. For the first time, governments agreed on a global framework for how carbon credits should be generated, verified, and traded. It wasn’t perfect, but it was a start – one that introduced rules on transparency, data verification, and country-to-country credit transfers. In short, it gave the market the structure that it desperately needed.

Tech Is Stepping In (Finally)
While much of the carbon market has suffered from a lack of transparency, tech is beginning to deliver real solutions. Blockchain, in particular, has emerged as a promising tool to trace carbon credits and combat greenwashing. A notable example is the Fils-Sui collaboration in the Middle East, which won the 2024 Best Social Impact Project at AIBC Eurasia. In Europe, startups like ClimateTrade (Spain), Carbonplace (UK), BeZero (UK), and InSoil (Lithuania) are leveraging blockchain, fintech, and carbon data infrastructure to bring traceability, credibility, and scalability to the carbon ecosystem - finally making carbon markets fit for purpose.

Carbon Capture Is Growing Up
While the policy and digital infrastructure were getting an overhaul, real-world innovation was happening too. Start-ups across Europe and beyond are building serious carbon removal capabilities. In Munich, OCELL raised €10 million to scale its AI-powered platform for high-quality carbon credit generation. Nearby, NeoCarbon produced its first batch of concrete using CO₂ captured by its own DAC tech, while Berlin-based start-up ecoLocked is turning biochar into carbon-negative building materials with €4 million in seed funding. Meanwhile, the Freiburg-based digital Trust Infrastructure start-up Carbonfuture just released their 2025 Guide to Carbon Removal Policy, providing an in-depth breakdown of the differences in policy across Europe, Canada, and the United States, giving clarity and confidence to both buyers and suppliers of CDR credits.
And it’s not just Germany. Swiss company Neustark raised a chunky $69 million to grow its recycled-concrete carbon storage efforts. In Zurich, Climeworks, which is already a giant in the DAC space, is turning air-captured CO₂ into rock beneath Iceland’s volcanic terrain. And in Austria, Tree.ly is helping landowners monetise their forests by turning sustainable practices into carbon credits.

This isn’t just about future potential either; many start-ups are already showing real traction. Danish firm Agreena became certified by Verra to produce carbon credits through regenerative agriculture, with backing from the IFC. Amazon also made headlines by launching its own carbon credit platform and Microsoft just signed the world’s largest biochar carbon removal deal, to be tracked by Carbonfuture, bringing heavyweight corporate interest to the table (although whether that inspires confidence or skepticism is up for debate). In Berlin, goodcarbon closed a €5 million funding round, a sure sign that investor confidence is (slowly) creeping back.
What Comes Next?
Rebuilding the carbon market presents many challenges. However, there seems to be a shift in momentum in a positive direction, and with the right leadership, we could see some real steps forward. This kind of growth, innovation, and strategic partnership doesn’t happen in a vacuum. It requires bold leadership, clear vision, and critically, the right people in the right roles. For VC-backed cleantech companies scaling across Europe, especially in the DACH region, the challenge isn’t just about technology or capital, it’s about execution. And execution hinges on leadership.

How can we help?
As specialists in Executive Search, we’ve seen firsthand how the right leaders can be the linchpin of operational scaling, investor confidence, and long-term success. Hiring isn’t a back-office task, it’s a strategic lever. Get it right, and you supercharge growth. Get it wrong, and the opportunity cost is enormous. At Harmonic Executive we specialise in getting the right people in the right places. If you’re navigating growth or gearing up for your next funding round, we can help you find the right leadership to match your ambition.
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