Tallinn-based startup KWOTA has collected 1.5 million euros in a pre-seed funding round led by Change Ventures. The round also saw participation from Startup Wise Guys, Lemonade Stand, Greenco Ventures, Vestman Energy, and angel investor Jānis Krūms. Founded by Rain Vääna and Argo Rannamets in 2021, the cleantech startup offers services for digital validation and trading of recycled material CO₂ emission savings.
CO₂ emissions are the primary driver of the global climate crisis. The world needs an urgent reduction of at least 20 billion tons of CO₂ emissions annually to avoid a climate crisis. 51% of the total CO2 emissions are created by material production. 100,6 billion tons of materials were produced in 2019 worldwide. Only 8,6% of produced materials are reused. The rest is burnt or buried.
Now with the funding, the company will be able to show its ways how material recycling can help significantly reduce CO2 emissions and set a global standard for it. The company wants to encourage people to use recycled materials in their production to be able to trigger global disruption, accordingly drawing attention to the climate crisis.
“We have a clear vision on how to achieve the global change in the material industry. We drive the global disruption for the material manufacturing industry by bringing more money to those who use recycled materials in their production,” commented founder and CEO Rain Vääna. “Recycled materials will get a digital footprint that guarantees unique transparency of carbon savings reporting and trading.”
“Kwota is re-writing the rules in the carbon credits market in a couple of key ways. First – Kwota flips the economics of CO₂ credits from 20%-80% in favor of consultants to 80-20% in favor of carbon reducers. Second – Kwota revamps the economics of recycling in favor of reusing more existing materials,” says Yrjö Ojasaar, Investment Partner at Change Ventures.