CarbonFlow raises $2.9M for carbon trading software

CarbonFlow, a San Francisco, Calif.-based developer of carbon trading software, has secured $2.9 million in first round funding. It was led by Clean Pacific Ventures, with OVP Venture Partners and New Zealand-based Meridian Energy, a strategic partner, also taking part. One of the firm’s cofounders is CNET Green Tech contributor Neal Dikeman.

The company’s software suite helps carbon market participants manage their emission-reducing projects and sell credits that are in compliance with the Kyoto Protocol or any one of other national emission trading systems. It claims its software can significantly lower administrative costs, provide reliable audit documentation and quickly transfer credits between buyers and sellers.

It has partnered with Det Norske Veritas (DNV), the first company to be accredited by the UN to verify GHG reduction projects under Kyoto’s Clean Development Mechanism (CDM) system, to streamline its applications and develop a consolidated “best of breed” practice with similar firms.

Whereas CarbonFlow’s software is intended for emission-reduction project managers to monetize their credits, Carbonetworks‘ emissions tracking software is designed to help corporations manage their carbon footprint and implement various policies to reduce it. The British Columbia, Canada-based software startup raised $5 million in first round funding earlier this week.