Anew Climate, a provider of carbon emission reduction products for businesses owned by TPG, has agreed to invest up to $640m in Terra Global Capital, the developer of carbon offsetting companies.
The carbon offset market has grown as companies look for ways to reduce their carbon footprint when they cannot mitigate emissions related to their own operations enough to meet their targets. That demand gave Anew the confidence to make an investment of this magnitude, said Randy Lack, Anew’s head of portfolio management.
“We were looking for a platform partner for NBS (nature-based solutions) and Terra Global has a fantastic track record,” Lack said in an interview. Nature-based solutions refer to sustainable management techniques employed in an area to help mitigate humankind’s environmental impact.
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Critics of the carbon offset market have questioned the reliability of the projects that underlie them. Lack said Anew would work “hand-in-hand” with Terra Global to ensure all projects meet strict environmental and social impact criteria.
Anew’s capital commitment will be split between buying shares in Terra Global and becoming an anchor investor in a new fund called the Terra Bella Fund, the companies said.
“Anew’s investment is a catalyst for Terra Global’s growth,” said Leslie Durschinger, founder of Terra Global, in an interview.
Based in Oakland, California, Terra Global works with government agencies and community groups in developing countries on projects that reduce carbon emissions from land management practices, such as B. preventing deforestation and introducing more efficient farming methods.
The Terra Bella NBS Carbon Pool is an investment vehicle to fund projects in exchange for proven carbon reductions over a set period of time. These reductions – verified according to international standards by third parties – form the basis for carbon credits, which are sold to investors and companies that want to achieve their own climate goals.
Anew was formed last year through the merger of Bluesource and Element Markets and is majority-owned by TPG Rise, TPG’s impact investing arm.
Source: Local Today
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