The commercial real estate industry is responsible almost 40 percent of greenhouse gas emissions worldwide and on Thursday a new proptech startup carbon title launched its online platform to provide carbon transparency to the real estate value chain and the public in its pursuit of carbon neutrality.
Founded in stealth mode in 2021, Portland, Oregon-based Carbon Title claims to have created the only end-to-end decentralized platform that brings together the entire value chain – from architects and developers to investors and building owners and carbon credit providers – to accelerate and scale the decarbonization of the real estate industry. The platform will use blockchain technology to ensure that all emissions data from existing and under construction buildings are easily accessible and searchable by the public.
“We think it makes sense to track and keep these carbon accounts for buildings so people know how much carbon has been picked up and what has been done to mitigate it,” he said Trevor Dryerco-founder of Miles Haladay of the carbon title. “We have a subscription fee per building. In addition to carbon calculations and keeping these accounts, we help people find lower-carbon building materials and decide when to use them to reduce their emissions. We then buy high quality carbon removal credits to go the rest of the way to carbon neutrality.”
A goal of Carbon Title is to protect businesses from greenwashing and enable consumers to make informed choices about where to live and work. The data will be available to the public when CarbonTitle.com goes live on Thursday.
“We believe this data needs to be public, and that’s one of the reasons we chose to host it on a decentralized platform,” Dryer said. “The decentralized platform allows us to create an always public, always immutable and highly traceable database that anyone can consult. This is one of the things that we are fundamentally passionate about in order to achieve our climate goals, especially in the real estate and construction sectors. We must continuously make this data available to the public.”
Carbon Title’s founders recognize that the real estate industry faces an almost impossible task: increase construction output to meet growing housing and infrastructure demands, while combating climate change through self-regulation and reducing carbon emissions.
In fact, the construction industry is expected to double in size between 2020 and 2030. Meeting the United Nations target of reducing emissions by 45 percent over that period will require a roughly 73 percent reduction in emissions across the real estate industry.
Dryer and Haladay, who before Carbon Title worked in fintech and construction respectively, are entrepreneurs and football dads who met and started their company because their sons played on the same local team. “I was the coach,” said Haladay.
Both founders see the path to carbon neutrality as a difficult path that will require not only social but also financial pressure to achieve the necessary goals.
“It’s going to come down to the banks,” Haladay said. “It will be very important for banks to be the ones who hold developers accountable and encourage them to do things differently. Banks and equity too, because the employees of the equity groups are also very interested in moving forward. That’s one of the amazing things about this generation coming through the workforce right now.”
Carbon Title has completed a seed round backed by a lead investor GreenPoint Partneralong with alpaca, allegory, rippleand proptech investor Packy McCormick. It is used by companies such as Hoffmann construction, Hire Crutcher Lewis, Killian Pacific, origin. Carbon Title also works with carbon offset creators such as drone seed. Seed round backers declined to reveal the amount raised.
“Accountability and transparency are essential components of the global push towards decarbonization Real estate, particularly in relation to carbon offset and removal projects,” he said Chris Green, Founder and CEO of GreenPoint Partners. “We believe in Carbon Title’s seamless, intuitive user experience Experience will enable developers – and the broader real estate industry – to significantly reduce emissions and meet decarbonization targets.”
Philip Russo can be reached at email@example.com.