New EU regulations targeting climate change are presenting challenges for many European businesses. In response, a German startup has raised new investment to help companies navigate these regulations and avoid potential penalties.
Kolum, a Berlin-based B2B startup, has raised €2.1M in pre-seed funding to develop its software solution for compliance with carbon pricing regulations in international trade. The funding round was led by FoodLabs, with participation from business angels specializing in ClimateTech, Customs, and B2B SaaS. Notable investors include Anna Alex (Co-Founder of Outfittery, Planetly, Nala Earth), Markus Sudhoff (Managing Partner of Climate Founders), Markus Linder (Founder of Zoovu, Inoqo), and Janine Lampprecht (Managing Director of Grenzlotsen).
Kolum’s software simplifies compliance with carbon pricing regulations, such as the EU’s Carbon Border Adjustment Mechanism (CBAM). As of October 1, 2023, EU companies importing certain products from non-EU countries must comply with CBAM, which prices the CO2 emissions of these imports. This regulation promotes fair competition and reduces carbon leakage but imposes significant data reporting challenges and potential fines for non-compliance.
Marius Sprenger, Co-Founder of Kolum, highlighted the impact of CBAM: “The EU CBAM alone is expected to save up to 100M tons of CO2 annually when fully implemented. However, affected organizations face significant challenges in tracking supply chain emissions and managing carbon pricing costs. The Kolum software integrates with existing processes to help organizations stay compliant and manage carbon costs efficiently.”
Kolum’s platform helps EU companies ensure CBAM compliance and assists third-country manufacturers in accurately calculating and sharing emission data using CBAM-specific methods. The software offers seamless integration, simplifying the compliance process for companies of all sizes.
The new funding will support the development of Kolum’s product, aiming to create a holistic carbon pricing management platform. This platform will help businesses worldwide manage compliance with various carbon pricing regulations and emission trading schemes, enabling informed decisions based on product sourcing and location.
Patrick Noller, General Partner at FoodLabs, expressed confidence in Kolum’s vision: “Currently, there is not only a lack of reporting solutions but an overall lack of understanding on how to report in a CBAM-compliant way. Kolum is one of the first players entirely focusing on this new regulation, and we believe the team is in a strong position to establish a dominant role early on.”
Despite being operational for only six months, Kolum is already collaborating with large enterprises and consultancies across Europe to manage CBAM effectively. The new capital will accelerate product development and support more companies within and outside the EU.
Anna Alex, Co-Founder of Outfittery, Planetly, and Nala Earth, praised Kolum’s potential: “Carbon taxes are a powerful tool for reducing global CO2 emissions, but they can be incredibly complex for organizations to navigate. When I met the Kolum team earlier this year, I was immediately impressed by their vision. The team’s deep domain expertise, swift execution, and clear product roadmap convinced me right away, and I’m thrilled to support them on their journey.”
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By Proptechbuzz
By Ravi Kumar