Greenly acquires Normative in €65m carbon
French carbon accounting scaleup Greenly has acquired its Swedish competitor Normative for €65 million. The deal consolidates the sector as funding for climate tech startups has fallen sharply.
The acquisition was announced as funding for carbon accounting startups has plummeted.
Greenly helps businesses measure and reduce their carbon emissions.
Greenly's CEO, Alexis Normand, stated the merger was driven by market necessity. “The market is asking for consolidation,” Normand told Sifted. “There’s too many players for the size of the market, in the long term, it’s not sustainable.”
The combined entity aims to create a “European champion” in the carbon accounting software space. Normative's CEO, Kristian Rönn, will join Greenly's board as part of the transaction.
Funding Context and Market Pressures
The broader market for carbon accounting has faced significant headwinds after a period of rapid growth.
Funding for carbon accounting startups in Europe peaked in 2022 but fell sharply the following year. A report cited by Sifted shows a dramatic decline in investment.
| Year | European Carbon Accounting Startup Funding |
|---|---|
| 2022 | €1.5 billion |
| 2023 | €237 million |
This cooling follows the high-profile struggles of other climate tech firms, such as the German carbon accounting startup Plan A, which faced difficulties in 2024 after raising significant capital.
Strategic Rationale for the Merger
The acquisition is positioned as a defensive move to build resilience and scale in a challenging funding environment. By merging, Greenly and Normative seek to pool their resources, customer bases, and technological expertise.
Normand emphasized the strategic imperative behind the deal. “When the market turns, you need to be stronger to survive the winter,” said Normand. “If we want to build a leader in Europe, we need to be able to compete with the US giants.”
He specifically highlighted the competitive threat from large US-based consulting and software firms expanding into the carbon accounting space. The merger is intended to create a combined force capable of challenging these established players.
Financial Details and Future Outlook
The transaction values Normative at approximately €28 million.
Normand framed the deal as a foundational step for future growth, despite current market conditions. “Consolidation is just beginning,” he said. “We hope to be the first of many in 2024 and we will see many more in 2025.” The combined company will serve thousands of business customers across Europe and North America.
