kolum: Simplifying Carbon Border Tax Compliance

Berlin-based startup kolum has secured €2.1 million in a pre-seed funding round to further develop its comprehensive software solution for carbon pricing compliance in international trade. According to the company's press release, the round was led by FoodLabs and supported by prominent business angels from the ClimateTech, customs, and B2B SaaS sectors.

Founded in late 2023 by Helge Wieggrefe and Marius Sprenger, kolum aims to simplify the complex challenges posed by carbon pricing regulations, particularly the EU's Carbon Border Adjustment Mechanism (CBAM). The startup's end-to-end software solution helps companies comply with CBAM regulations and assists third-country manufacturers in calculating emission data according to CBAM-specific methods.

Despite being live for only six months, kolum is already working with large companies and consultancies across Europe. The fresh capital will be used to accelerate product development and expand their reach to more affected companies both within and outside the EU.

Co-founder Marius Sprenger emphasized the potential impact of CBAM, stating, "The EU CBAM alone is expected to save up to 100 million tons of CO2 annually once fully implemented. However, affected organizations face significant challenges in tracking emissions across the supply chain and managing CO2 costs."

The European CBAM is the world's first carbon border tax, creating a strong incentive for European companies to prioritize low-emission imports and encouraging third-country manufacturers to adopt greener production processes. With other countries following suit, such as the UK planning to introduce its own CBAM by 2027, a significant percentage of companies engaged in international trade will be affected by carbon pricing in the long term.