The Berlin-based climate tech startup Climatiq has successfully closed a Series A funding round of €10 million, positioning itself as a leading provider of Carbon Intelligence Infrastructure. The round was led by Alstin Capital, with participation from existing investors Singular and Cherry Ventures. This funding marks an important milestone for the embedded carbon intelligence sector and demonstrates the growing interest of institutional investors in scalable climate tech solutions. Especially in times of increasing regulatory requirements such as the CSRD, the integration of sustainability data is becoming a key focus for companies (Overview of ESRS Standards and CSRD). Notably, the CSRD is set to impact over 50,000 companies across the EU, significantly expanding the scope of mandatory sustainability reporting and driving demand for robust carbon accounting solutions (source).
Climatiq is developing an API-first platform that embeds accurate emissions data directly into existing enterprise software to eliminate information silos that hinder real climate action. Founded in 2021, the company has already processed over one billion carbon calculations via its APIs in the past 12 months and serves a growing community of 30,000 sustainability professionals. With the new funding, Climatiq plans to expand its AI capabilities to enable automated emissions calculations for activities, products, and suppliers. For companies already required to report extensively, the integration of APIs and ESG data standards is becoming increasingly important (ESG APIs – Fundamentals and Use Cases). This aligns with broader trends, as a recent OECD report highlights the critical role of standardized ESG data in enabling transparent and comparable sustainability reporting (source).
Climatiq’s core advantage lies in its embedded approach: Instead of adding yet another dashboard for CSR teams, the platform integrates directly into the 200+ business operations platforms that companies already use. The solution includes a scientifically validated database with over 200,000 emission factors, covering all scopes and overseen by a Scientific Advisory Board. This breadth of integration is a key differentiator, as it allows organizations to seamlessly incorporate carbon intelligence into daily workflows rather than siloing sustainability efforts.
The API architecture enables real-time emissions calculations for various use cases: from energy and procurement to freight, travel, and cloud computing. Particularly differentiating is the AI-powered emission factor mapping, which works even with fragmented or indirect data sets (Scope 3 Emissions in Real Time: AI Makes Supply Chains Transparent). For many companies, covering Scope 3 is the biggest lever to remain future-proof both strategically and in terms of regulation (Decarbonizing Scope 3: Insetting and Climate Hardware). According to the Science Based Targets initiative, Scope 3 emissions often account for more than 70% of a company’s total carbon footprint, underscoring the importance of comprehensive value chain data (source).
The methodology complies with ISO 14067, the GHG Protocol, and ISO 14064-3:2020-05, making the calculations suitable for regulatory reporting under CSRD/ESRS and CBAM. This alignment with global standards ensures that Climatiq’s outputs are audit-ready and compatible with evolving regulatory frameworks.
Critical Risk: Carbon emission factors are increasingly becoming a commodity. Open-source databases (DEFRA, EPA, OpenLCA, ecoinvent) are growing rapidly, and large language models like ChatGPT can already access standardized emission factors. The size and scientific validation of Climatiq’s database do not provide a lasting defensive moat. As the market for ESG data and sustainability tools matures ever faster, the discussion around the advantages and risks of AI, data commoditization, and automation is intensifying (Clean, Connected Data: The Foundation for Successful AI and Sustainability Strategies). Recent analyses from McKinsey and the World Economic Forum echo this trend, noting that the proliferation of open data and AI-driven tools is eroding traditional data moats in the sustainability sector (source).
Market Dynamics: Once an industry standard is reached, emissions data become “table stakes”—available via APIs, open source, or directly through generative AI. The Big Four (SAP, Salesforce, Microsoft, Google) can replicate similar databases and AI mapping logic, intensifying competition and reducing barriers to entry.
Implication: Climatiq’s main argument (largest database, scientific validation) will lose defensive quality in the medium term. What remains is operational speed and breadth of integration—but no lasting technological moat. To sustain differentiation, Climatiq may need to focus on proprietary optimization algorithms or exclusive partnerships that go beyond data provision.
Fundamental Problem: Climatiq excels at measuring CO₂ emissions, but it’s unclear whether usage actually leads to emission reductions. CO₂ measurement is a prerequisite for reduction, but not a guarantee. Simply embedding an API does not automatically lead to behavioral or process changes. The importance of avoiding greenwashing and implementing truly robust impact logics is widely discussed among market observers (Avoiding the Greenwashing Trap: How to Establish a Real Theory of Change). This challenge is not unique to Climatiq; a 2023 report by the CDP found that while 96% of companies measure emissions, only 41% have concrete reduction targets (source).
Lack of Additionality: Without evidence that the API leads to actionable decisions or demonstrable process changes (e.g., supplier switch, product shift), the impact cannot be robustly quantified. This is a classic “soft attribution” error, and it highlights the need for integrated change management and incentives alongside data solutions.
Solution Not Implemented: One possible proof of impact would be dynamic measurement per customer: If API calls over a customer ID deliver significantly lower CO₂ values over time (with stable production numbers), this could be considered evidence of enabled impact. Such data likely exists, but is not available to me.
Risk for Impact Investors: Many Article 9/impact funds now require true additionality and proof of impact. Without this evidence, there is a risk that the solution is used only for compliance (CSRD, compliance, reporting) but has no real climate impact. This is a growing concern as regulators and investors increasingly scrutinize the difference between reporting and real-world decarbonization (source).
The global carbon accounting software market was valued at $16.92 billion in 2023 and is projected to grow at a CAGR of 22.1% to $95.47 billion by 2030. Key drivers are increasing regulatory requirements and the growing adoption of ESG standards (Sustainability as a Success Factor: The 7 Biggest Benefits for Companies). This explosive growth is further supported by the rapid expansion of ESG investment, which surpassed $35 trillion globally in 2022 (source), signaling sustained demand for robust sustainability data solutions.
Climatiq’s go-to-market strategy focuses on B2B SaaS providers and in-house software developers as primary customers. Through partnerships with leading ERP and supply chain management providers such as Celonis, IFS, and Siemens, the company reaches global business customers indirectly. This channel strategy leverages established enterprise platforms to accelerate adoption and scale impact.
The focus on Scope 3 emissions is a smart strategic move, as these typically account for 90% of a company’s carbon footprint but are difficult to assess due to fragmented data and complex accounting methods (Understanding Scope 3 Emissions: Guide to SBTi, Emission Credits, and First Steps). The SBTi manual emphasizes that effective Scope 3 management is now a “must-have” for credible climate strategies (source).
CEO and co-founder Hessam Lavi brings over 15 years of experience in digital product development. His career includes leadership roles at Google (Team Lead Search Quality) and the successful exit of Jobspotting to SmartRecruiters. This combination of technical expertise and scaling experience is ideally suited to the challenges of an API infrastructure company.
The founding team is complemented by Philipp von Bieberstein and Isis T. Baulig. The scientific advisory board includes renowned experts such as Mike Berners-Lee, Shelie Miller, and Robert Armstrong, which strengthens the credibility of the data quality and methodology. The presence of such high-profile advisors is a significant asset, as it signals scientific rigor and industry trust to both customers and investors.
The API-first business model enables scalable monetization via transaction volume. With over 200 platform integrations and global enterprise customers such as Cisco, PWC, Siemens, and Stripe, Climatiq demonstrates a solid foundation for recurring revenues. The opportunities and challenges regarding monetization and the role of ESG standards are highlighted by current ESG reporting trends (VSMe Standard: Sustainability Reporting for SMEs).
The €10 million Series A, led by Alstin Capital, reflects market validation of the embedded approach. Alstin is an established B2B software investor with a €175 million Fund III and a track record of exits such as Stocard (to Klarna). According to Tech.eu, this round positions Climatiq to further develop its AI capabilities and expand its reach in the enterprise market.
The carbon intelligence market is fragmented with various approaches: full-service platforms (Watershed, Normative), carbon accounting software (Emitwise, Sweep, Multiplye), and Scope 3 specialist solutions. According to EU-Startups, Climatiq’s infrastructure-layer approach is designed to reduce adoption barriers and increase the likelihood of continuous use compared to standalone platforms.
Current Differentiation: Climatiq’s infrastructure-layer approach reduces adoption barriers and increases the likelihood of continuous use compared to standalone platforms.
Eroding Moat: The supposed competitive advantages (largest emission factor database, comprehensive API coverage, scientific validation) are not defensible in the medium term. Partnerships with ERP providers offer temporary entry barriers, but no lasting exclusivity (Critique and Opportunities: The EU Omnibus Package and the Future of Sustainability Reporting). As more players enter the space and open standards proliferate, sustained differentiation will depend on continuous innovation and value-added services.
Qualified Recommendation with Reservations: While Climatiq formally meets Article 9 criteria, there is no proof of actual emission reductions. The platform remains a “reporting and transparency play,” but not a proven decarbonization accelerator. Investment is only recommended if the company commits to developing robust impact attribution, such as tracking customer-level emission reductions over time or integrating decision-support tools that drive real change (source).
Cautious Recommendation: The B2B SaaS model offers attractive metrics, but long-term defensibility is questionable. The data moat is eroding due to commoditization. Invest only with a clear strategy for post-commodity differentiation (e.g., proprietary optimization algorithms, exclusive decarbonization services). As seen in other SaaS verticals, sustainable growth will depend on the ability to deliver unique value beyond data access (source).
Reserved Recommendation: While Climatiq addresses a structural megatrend, both technological defensibility and impact remain unproven. Regulatory tailwinds alone do not justify the valuation if the core product becomes a commodity. Investors should scrutinize the company’s roadmap for innovation and evidence of measurable climate outcomes.
Climatiq represents a well-executed but structurally vulnerable climate tech investment. The company benefits from regulatory tailwinds and demonstrates strong operational execution, but faces two fundamental challenges: the looming commoditization of its core data and the lack of proof of actual climate impact. As the market matures, the winners will be those who can move beyond compliance and data aggregation to deliver measurable decarbonization outcomes and proprietary value. For investors, Climatiq is attractive as a short-term beneficiary of the compliance boom, but risky as a long-term climate impact bet without robust defensibility and proven additionality.
The investment decision should depend on: the company’s willingness to develop true impact attribution and a clear strategy for the post-commodity phase of the carbon data market.
Disclaimer & Methodological Notes
This investment analysis is based solely on publicly available information and represents an external assessment without access to internal company data. Only press releases, funding announcements, media reports, and industry-standard market data were evaluated.
Statements regarding emission balances and transition plans are based on company assumptions and publicly communicated data (as of June 2025). No independent audit was conducted.
Important Notes:
No Due Diligence: This analysis does not replace a professional investment review with access to pitch decks, financial data, or management discussions.
External Perspective: The assessment is based on public sources and industry comparisons, not on internal KPIs or detailed technology analyses.
Timing: All statements refer to the status of available information as of June 2025.
No Investment Advice: This analysis is neither a buy nor sell recommendation and does not replace individual investment advice.
Conflicts of Interest: The author holds no direct stakes in Climatiq or the mentioned investors, unless explicitly stated otherwise.
Purpose:
This analysis is intended solely for general market assessment and as an example of valuation methods in the climate tech sector. For concrete investment decisions, a professional due diligence with direct company access is required.
Disclaimer:
fiegenbaum.solutions assumes no liability for the completeness, accuracy, or timeliness of the information presented or for investment decisions derived from it.
For professional advice or due diligence support in the climate tech sector, feel free to contact me directly.