Carbon-Secured
Lending
Kumo provides software to facilitate institutional debt financing for the carbon removal industry.
Trusted by
The Time to Participate in Carbon Removal is Now
Realizing a $1.2 trillion market potential by 2050*
*
McKinsey, Carbon removals: How to scale a new gigaton industry, December 2023
500%
CAGR for the carbon market
$3.16B
Off-take demand
>400
Durable CO2 suppliers
The Carbon Dioxide Removal (CDR) industry is evolving into a mainstream market.
Significant advancements in technology alongside Measurement, Reporting, and Verification (MRV) systems have the ability to ensure a reliable supply of high-quality carbon removal credits. The technical readiness of CDR projects is proven, and projects are transitioning to commercial scale.
However, the scale-up of these projects from 400k tons of carbon removed to gigatonne capacity to meet net-zero targets and to ensure a liveable future requires significant capital. This trillion-dollar problem can only be solved with a trillion-dollar solution, and for that, the market needs institutional debt participation.
The gap between durable CDR demand and actual delivery (source: CDR.fyi)
2020
2021
2022
2023
2024
12m
10m
8m
6m
4m
2m
0
Number of Sold Durable Carbon Credits
Number of Delivered Durable Carbon Credits
Gap Between Demand and Actual Delivery
But the Carbon Market Remains Unbanked
The evolving market needs traditional debt capital.
The key challenge in financing the carbon removal industry is the misalignment of risk, return, and volume for capital providers to step in. Until now, it would require highly educated experts, time, and manual work to aggregate and assess project data, and to build effective partnerships to de-risk funding. This has driven up transactional costs and made most financing opportunities non-viable.
Lack of data, knowledge, transparency and information flow
High investment and reputational risk
Limited revenue opportunities and high-quality deals
Kumo unlocks this massive opportunity
We Facilitate Institutional Debt Financing in the Carbon Market
Kumo's proven carbon debt financing platform combines financial expertise with software infrastructure to reduce costs while improving risk management and efficiency for capital providers and originators. This enables high-class project developers to build solutions for a livable future.
How It's Done
Aggregation, assessment, and monitoring before and throughout project engagement
As a new asset class, the carbon market requires access to better data and innovative solutions for risk assessment and due diligence. Kumo meets these needs with automated data aggregation and comprehensive pre-deal assessments based on our Carbon-Debt Financeability Framework.
Software, frameworks, and standardization
Kumo provides a high degree of standardization and optimized frameworks for carbon debt financing. In combination with our software tools, this allows for the development of novel financial products in the carbon market, like the structuring of debt portfolios or bond securitization.
Making carbon a legal security through tokenisation
Kumo uses carbon as legal collateral to reduce the risk of lending.
In collaboration with a tier-1 law firm, KUMO developed a novel solution that leverages tokenization technology and robust legal frameworks to treat carbon credits as legal collateral to secure loans.
A Proven Concept
Facilitating the first-ever carbon-backed loan
In Q4 2023, we ran a proof of concept with ABN AMRO’s Sustainability and Digital Assets team, leveraging KUMO’s software infrastructure to facilitate the first carbon-backed loan in history.
By utilizing tokenization and smart contracts to collateralize carbon credits, we successfully channeled critical funding to Vlinder, a mangrove project developer. This demonstrated how collateralizing carbon credits to secure loans has the potential to significantly reduce financial risks and lower costs associated with financing climate projects.
How KUMO Can Help You
Capital Providers
Unlock new revenue streams via carbon-backed lending with Kumo's proven carbon debt financing platform.
Kumo Offering:
Automate onboarding and build on pre-deal assessments based on Kumo's financeability framework and carbon indices data
De-risk lending through carbon credit collateralization, richness of data, and real-time monitoring
Improve process efficiencies with KUMO's software — reducing structuring, issuance, and lifecycle management costs by up to 80%
Project Developers
Use debt to finance your carbon project, leveraging existing carbon credits or off-take agreements to reduce costs and time to access capital.
Kumo Offering:
Finance your project against off-take agreements, or additional assets as collateral
Access a unique network of Capital and Insurance Providers and access additional financing services from banks
Assess debt financing availability and structures with ease through Kumo's proprietary Loan Modeler and free financeability assessment
You're in Good Company
Kumo works with a growing network of climate investors, project developers, and technology providers working together to scale financial solutions in the carbon removal industry.
