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SC Ventures, ENGIE Factory launch Qatalyst to transform carbon finance market

Poyan Rajamand, Venture Lead at SC Ventures

The pressing need for credible and efficient carbon abatement solutions has led to the birth of Qatalyst, a due diligence platform aimed at transforming the carbon finance market. This initiative, developed collaboratively by SC Ventures, Standard Chartered’s fintech and innovation arm, and ENGIE Factory, the startup studio of French utility multinational ENGIE Group, promises to streamline investment processes in support of global climate goals.

Qatalyst’s platform was incubated and developed in collaboration with carbon teams from both ENGIE and Standard Chartered. The goal is to simplify and expedite the identification, due diligence, and oversight of carbon abatement projects, thereby addressing longstanding inefficiencies in the sector.

As Poyan Rajamand, Venture Lead at SC Ventures, explains, “Financiers currently face extensive due diligence requirements to ensure projects deliver the promised carbon impact. Qatalyst brings credibility to this market, enhancing funding opportunities.”

The platform leverages advanced technology, including AI-enabled tools, to provide investors with greater confidence in project outcomes. By integrating requirements from external registries, internal compliance needs, and evolving regulations, Qatalyst seeks to address the credibility gap that has long plagued the carbon finance market.

Addressing key pain points

Carbon abatement projects often suffer from fragmented workflows, prolonged documentation processes, and challenges in aligning with regulatory changes.

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Rajamand notes, “A misconception exists that generating carbon credits from nature-based solutions simply requires allowing nature to grow. In reality, significant funding is needed to kickstart these projects.”

Qatalyst tackles these pain points by providing a streamlined digital environment where financiers and project developers can efficiently exchange information and make informed decisions.

This efficiency has already been demonstrated during the platform’s development phase, where it enabled ENGIE and Standard Chartered to conduct evaluations in a fraction of the usual time. Such time savings open doors for financiers to consider smaller or unconventional projects previously deemed unfeasible due to resource constraints.

Rajamand highlights, “As more financiers join, projects seeking funding will increasingly turn to Qatalyst, creating a virtuous cycle.”

A growing market for carbon offsets

The global carbon market is poised for substantial growth as awareness of climate challenges intensifies. Developing nations have significantly increased funding commitments to carbon projects, with figures tripling to US$300 billion.

Despite these positive signals, Rajamand acknowledges that challenges remain: “The road ahead will be bumpy, but the signs point to a bright future for carbon markets.”

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The urgency to achieve 2030 climate targets is another driving factor. As the deadline approaches, reliance on carbon credits and offsets is expected to grow. “Reducing carbon footprints will become increasingly challenging, making offsets a critical component of the transition,” Rajamand explains.

Qatalyst’s inception and development underline the importance of collaboration in addressing complex global challenges.

Rajamand also highlights the role of digital strategies in scaling the platform’s impact. As legislative and market awareness around carbon credits grows, Qatalyst is positioned to attract stakeholders through both traditional networks and digital outreach.

Image Credit: Qatalyst

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