The Journey To Kenya

Mar Velasco, having grown up close to nature in Mexico City, had always been drawn to the outdoors. And she could see that nature was being neglected. Witnessing environmental degradation firsthand, she decided from an early age to dedicate her life to climate solutions. After completing her undergraduate studies, she started her career at Grupo Bimbo, the largest baking company in the world, where she worked in Investor Relations and the Internal Consulting department. She developed a deep understanding of global investor interests and how to achieve strategic alignment through company growth. She also delivered local initiatives across climate-related sectors, including energy, solar and waste management, fostering cross-functional collaboration to make sure the organization was working to its full potential. Her journey led her to MIT Sloan, where she became aware of the sheer amount of work that needed to be done in the carbon emissions space.

Meanwhile, Grace Lam was making her mark in sustainability at McKinsey’s Hong Kong office. After honing her analytical skills with various projects, including a stint in the New York office, she switched gears to support the consulting firm to build its sustainability practice in China. Her experiences sparked a desire to delve deeper into the various ways to accelerate climate actions globally, leading her to pursue a joint MBA/MPP degree at Harvard. As she was thinking through different climate verticals to focus on, it made sense to her to look at already existing and proven solutions. “While we need innovations to reach net zero, we must also recognize that there are many proven technologies out there already, and the unresolved challenge is to scale and implement them, especially in the Global South,” she explains. 

Their respective paths led them to intern in Nairobi, Kenya last summer. Home to startups and micro-enterprises working on climate solutions, interning in Kenya allowed them to engage with work on the ground, and the people, companies, and communities doing this work. “It’s a special group [of interns] in Nairobi,” says Mar. “As an MBA student, you have to go out of your way to get there. With everyone you meet, there’s a common mindset, to want to explore, and a recognition that with our education comes a privilege to tackle big social issues”.

Mar interned at Komaza, a forestry company, working with the Carbon Management team, while Grace worked at KawiSafi Ventures, a pan-African impact VC fund. Sharing their frustrations about why the carbon market was growing so slowly, they decided to meet for dinner. That was when their perspectives came together.

Why Carbon Credits?

Grace’s work at KawaSafi helped to crystallize the opportunity in carbon credits. "When companies came to pitch us, they would talk about how they see carbon credits as a way to improve their profitability and expand their addressable market," she remarks. "But when you would ask them how to do it, they would respond 'We'll figure it out one day.'" To which her response was, “Why are you trying to push to later what you can do now?”

Grace enjoying a team lunch with her colleagues in Nairobi

“I see carbon markets as an important and necessary financing mechanism to support the rollout of clean technologies in emerging markets. Its current state left a lot to be desired, due to the lack of transparency and integrity. But that also indicates the need to find innovative ways to create a more equitable, transparent, and high-quality carbon market.”

Mar in her work saw tangible potential for impact within carbon credits. Her internship took her to Kilifi where she interviewed farmers for 10 hours a day.  “I came to understand how unlocking capital for companies through carbon credits could enable them to truly benefit the communities there,” she narrates. “Being on the ground allows me to see the tangible impact carbon credits can bring to the communities who are struggling to make ends meet every day.” 

With the carbon market projected to grow from around $2bn today to $30-50bn in 2030, there is an open question of how we get there and who benefits. They experienced first-hand how the carbon credit issuance process is complicated, time-consuming, and costly for many pro-climate businesses. “You realize these pro-climate businesses have never thought about carbon credits”, Mar adds. “The knowledge is so niche that many of them do not even realize their potential in the carbon market.”

Bringing their perspectives together, they realized they could level the playing field.

“There are people on the ground doing a lot of impactful climate work, but they lack the funding to expand. The carbon market allows us to connect them with organizations that need carbon credits to reach their climate goals. It’s a win-win.”

Grace, Co-Founder

“We can create demand by serving a few different groups,” Mar notes, “There are those who have the capability to capitalize from carbon credits but lack the means to navigate the complexities involved. Additionally, there are individuals who have attempted carbon projects previously but found the process stressful, seeking a more streamlined approach. Lastly, there are those unfamiliar with the concept altogether, presenting an untapped market for us.”

Mar working in coastal Kenya, Kilifi (which she describes as “paradise on Earth”!)

Founding NetaCarbon

Seeing this opportunity to connect investors and businesses, they acted upon it. “After the dinner, it instantly clicked, that we should aim to work together to address the real problems and create real solutions to democratize access to carbon markets,” remarks Mar.

“We had this idea in Kenya, but it was still preliminary. It really helped that we were both studying in Boston and could work together throughout the school year to build NetaCarbon from scratch,” Grace adds.

Only a 15-minute bike ride between Harvard and MIT, they dove into the practical steps of building a company. Tapping into local resources, interviewing investors and potential clients, and participating in pitch competitions, they realized how they could deliver the most value – by streamlining the carbon credit issuance process. 12 months later, they are ready to expand their team and kickstart their pilot project in Mexico City.

“We’ve learned a lot from converting an idea into something more tangible,” Grace observes. “There are a lot of practical steps needed to build a climate tech company. But the climate ecosystem is truly incredible, in the sense that everyone we talked to is willing to help out and share their knowledge and experience. It’s very heartwarming to see that.”

“Listening is crucial,” Mar adds. “You need to listen to the people who will be using your product. There is always something you can get out of the most random conversations. Be flexible to new ideas, while not losing sight of your mission. You also have to hustle. You cannot say ‘I have my entire life to do it’. When it comes to climate and people, you must take on matters with urgency. If Grace and I don’t do something, it’s not going to get done.”

“We’re always wired, thinking about what we can do to make it better, to move faster.”

Mar, Co-Founder

The Path Ahead

What excites Grace and Mar the most is the tangible impact NetaCarbon is set to deliver alongside its limitless potential. “They are so many directions we can go forward,” reflects Grace. “We are starting to really focus on identifying and reaching out to potential customers to onboard them onto the platform”.

“NetaCarbon will help companies, communities, and ultimately the planet,” asserts Mar. “Our solution will unlock barriers to access the carbon market. We’re building a platform that not only makes the process seamless for smaller players currently shut out – streamlining it, increasing efficiency, and making it more user-friendly. We’re also ensuring the process is safe – prioritizing quality, integrity, traceability, and transparency.”

They are well aware that this journey has not been a solitary one. “We’re incredibly fortunate to have people help us along the way,” Grace acknowledges. 

Mar agrees. “The process is completely fueled by the people around us, and the time and support they’ve given. Thank you all!”

And so, as Grace and Mar's story continues, driven by their unwavering determination and a shared vision for a greener, more sustainable future, NetaCarbon's has only just begun. Follow their journey on LinkedIn and on this blog to see how NetaCarbon can reach its goal of democratizing access to the carbon market for all!