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Greenbackers Deal of the Week Profile: Balance Eco

Balance Eco: Redefining Carbon Offsetting with BALANCE Units for Biodiversity

The Voluntary Carbon Market (VCM) is struggling to scale, losing relevance, and is plagued by issues like opacity, bad practices, and lack of trust, especially among small-to-medium-sized enterprises (SMEs). While large corporations are under increasing pressure to mitigate emissions, the existing carbon credit system has failed to meet their needs, due to growing skepticism over the credibility of carbon offsets. As a result, the market has faced a sharp decline in value and volume, making it difficult to achieve 2050 CO2 targets.

Balance Eco is here to change that. With its innovative “Balance for Biodiversity” approach, the company is revolutionizing carbon offsetting by introducing BALANCE Units, a new form of carbon credit that creates real, verifiable biodiversity benefits. This solution goes beyond traditional carbon credits by sequestering CO2, generating socio-economic benefits for local communities, and ensuring permanence for up to 100 years.

Greenbackers is pleased to introduce Balance Eco, a company leading the charge in transforming the voluntary carbon market. Balance Eco’s BALANCE Units not only offer high-integrity carbon offsetting but also create biodiversity and support sustainable livelihoods. Through its proprietary peer-reviewed methodology and platform, Balance Eco provides a trustworthy, scalable, and culturally relevant solution for businesses looking to mitigate their environmental footprint.

Why Balance Eco:

  • Innovative technology: Balance Eco solves the scalability problem of the Voluntary Carbon Market (VCM) with a robust, peer-reviewed methodology that addresses the six major criticisms of existing carbon credits. Their Sector Calculator—a SaaS platform—removes the need for complex assessments, enabling small-to-medium-sized businesses to enter the market and offset their emissions without barriers. The BALANCE platform and Sector Calculator also provide transparency and verifiability to businesses, ensuring they can confidently report their carbon mitigation efforts. The platform makes it easy for companies of all sizes to track their progress and demonstrate their commitment to sustainability.
    • Biodiversity Focus: Unlike traditional carbon credits, BALANCE Units focus on biodiversity and community benefits. With 100-year contractual obligations to ensure permanence, indigenous species planting plans, and at least 40% of funds directed to local communities, Balance Eco creates a truly ethical and impactful carbon offsetting solution. This focus on biodiversity ensures that businesses are not just offsetting their carbon but contributing to a more sustainable and resilient world. BALANCE Units not only sequester CO2 but also deliver long-term socio-economic benefits, helping to build more sustainable communities.
    • Business Model: The primary revenue driver is the sale of BALANCE Units to large corporations, which are typically purchased annually as part of their sustainability efforts. Additionally, Balance Eco monetizes its Sector Calculator through annual subscriptions from clients. The business is cash-positive with a 45% gross margin, making it a financially sustainable solution for the carbon offset industry. By offering both carbon units and subscription-based software, Balance Eco effectively addresses the needs of both large corporations and SMEs.
  • Commercial traction: Balance Eco is already seeing significant traction in the market. With 270k+ BALANCE Units contracted and a £2m+ sales pipeline, the company is establishing itself as a leader in the space. Their peer-reviewed methodology has set the gold standard for carbon credits, and they’ve engaged with key events like COP and UN Climate Week to further promote their solution. These milestones demonstrate growing customer interest and the increasing acceptance of their model.
  • Market potential: The voluntary carbon market is experiencing strong growth despite recent setbacks. To meet 2050 CO2 targets, the market needs to scale by 100x, and Balance Eco’s approach provides a clear path forward. The demand for high-integrity carbon credits, particularly those that also offer biodiversity co-benefits, positions BALANCE Units to become a major player in the market. With a growing trend toward removals with co-benefits, Balance Eco’s solution is poised to capture the growing demand, especially among businesses looking for effective and transparent carbon offsetting options.

Investment Snapshot:

  • Type: Seed
  • Target amount: £3m
  • Minimum contribution: £50k

For further information or to speak with Balance Eco directly contact Annika Borrmann at [email protected]