Australia-based carbon markets investor Carbon Growth Partners (CGP) announced today that it is planning to raise US$200 million for its re-opened Carbon Growth Fund to invest in global carbon credits and carbon offset projects.
Founded in 2020 to manage investments focused on the verified/voluntary carbon market, Melbourne-based Carbon Growth Partners says its aim is to deliver three key outcomes through investing: to generate financial returns, protect and restore nature, and accelerate climate action.
Demand for carbon offset projects that counteract the release of greenhouse gases, and related credits, is expected to increase significantly over the next several years, as companies and businesses increasingly launch net zero ambitions, and turn to offsets as a bridge to their own absolute emissions reduction efforts, or to balance difficult to avoid emissions.
Rich Gilmore, CEO of Carbon Growth Partners, said:
“Carbon remains one of the most under-priced asset classes and we anticipate significant price rises as companies meet their commitments to reduce net emissions.”
Carbon Growth Fund 2 was launched in May 2022, and announced its first close in November, raising $32 million. The firm is now reopening the fund with the intention of raising $20 million before the end of this month and $200 million by mid-2024.
This comes after the company’s announcement that its original fund, the Carbon Growth Opportunities Fund, generated a 17% return since its launch in 2021, significantly outperforming other major asset classes like cash, stocks, bonds, gold, and crypto.
“Reopening Carbon Growth Fund No. 2 will allow investors to capitalise on that opportunity while providing finance to high-quality, nature-based and technology-based solutions that accelerate climate action around the world.”
To date, CGP has invested over $230 million in projects that have led to the reduction or removal of 37 million tonnes of greenhouse gases, as well as helped address 15 out of the 17 United Nations Sustainable Development Goals.