The company offers landowners the chance to earn from carbon credits in the voluntary carbon market
To make the calculation of potential carbon income faster and easier for landowners and forest owners in Europe, and to open up opportunities to earn in the voluntary carbon market, climate startup Arbonics is today launching its unique, data- and science-driven technology in Latvia and Estonia.
The company, founded in early 2022 by Kristjan Lepik (Kristjan Lepik) and Lisett Luik (Lisett Luik), offers a nature-based solution for tackling climate change, with a particular focus on forestry. By changing the way landowners analyze and calculate the carbon sequestration potential of their land or forest – the process of capturing and long-term storage of carbon dioxide in the atmosphere – Arbonics offers new income streams for forest and landowners, while simultaneously improving the voluntary carbon market.
The cooperation process with land and forest owners works as follows: first, Arbonics performs an initial assessment of the land's potential carbon, which takes less than a minute, focusing specifically on the potential from afforestation, the forest's ability to store carbon, and the specific profit potential of the land. The platform is capable of analyzing data on both unused land and providing individualized solutions for existing forests that generate carbon credits by adapting new forest management practices. Arbonics carbon calculations are based on data that can then also be easily audited. The company will also explain how this assessment is created and provide practical recommendations for increasing the profit of land or forest owners.
The exact income will depend on the type of trees planted, soil quality, project duration, and similar factors. For example, an afforestation project of birch trees on high-quality land in Latvia could generate approximately 205 carbon units per hectare over the course of a 50-year contract. If the price of a carbon unit is 50 euros, the afforestation project could generate a profit of approximately 10,250 euros per hectare. This is an income estimate, and the actual amount depends on the specific agreement, as well as the price of the carbon credit at the time of sale.
The voluntary carbon market is growing rapidly, and demand is expected to increase 15-fold, with the total market value reaching 50 billion dollars by 2030, as an increasing number of companies and consumers seek to invest in carbon emission reduction schemes to offset their emissions.
“Landowners can be a powerful ally in the fight against climate change by providing the ability to store millions of tons of carbon dioxide in forests and protect biodiversity. However, they need someone to provide the necessary data and perform the analysis. Using our flexible data models and based on a deep understanding of voluntary carbon markets, Arbonics can help landowners make a positive impact on the climate,” explains Lisett Luik, co-founder of Arbonics.
“Trees can still be used as a source of income, but we offer land and forest owners two new revenue streams from carbon and biodiversity. Our goal is to create a new forest economy and change the way forests are valued,” comments company co-founder Kristjan Lepik.
To develop this platform faster, Arbonics received 1.8 million euros in seed funding this year from Wise co-founder Taavet Hinrikus (Taavet Hinrikus) and Plural.
Arbonics has assembled an all-star team to build its platform, bringing together expertise in forestry, carbon, and business from Apple, American Express, Starship Technologies and World Wildlife Fund. The company also works closely with a team of geospatial data scientists from the University of Tartu – this collaboration has played an important role in developing the automated and data-driven tool, while ensuring that all analysis is rooted in the latest science.
About Arbonics
Arbonics is a climate tech startup founded in 2022 that combines the worlds of forestry and technology to fight climate change. The company's founders are Kristjan Lepik (Kristjan Lepik) and Lisett Luik (Lisett Luik).
The company has raised 1.8 million euros in pre-seed funding from Wise co-founder Taavet Hinrikus (Taavet Hinrikus), and has created a unique data and science tool for calculating carbon revenue, as well as developing a product portfolio that covers the entire life cycle of a forest. The Arbonics team combines forestry, carbon, and business expertise from Apple, American Express, Starship Technologies and World Wildlife Fund with the support of scientists from the University of Tartu.
Website
https://www.arbonics.com/latviski