Environmental commodities manager and developer ClimeCo announced today it has raised more than $50 million in an investment round, with proceeds aimed at developing the company’s decarbonization projects globally.
The financing was led by growth investor Warburg Pincus and construction & materials, environmental services, and specialty chemicals conglomerate The Heritage Group.
Founded in 2009, ClimeCo is an advisor, transaction facilitator, trader and developer of environmental commodities and sustainability solutions, aimed at helping clients enhance their sustainability impact by offering policy advisory, risk management, offsets sourcing and project development services. The company manages a portfolio that includes carbon offsets, plastic credits, Renewable Energy Credits (RECs), Forecasted Mitigation Units (FMUs), criteria air pollutants, and water quality credits.
William (Bill) Flederbach, CEO and President of ClimeCo, said:
“We operate at the forefront of an exciting transformation as global businesses, governments, and environmental advocates recognize that environmental markets are the most efficient way to address environmental challenges. We are growing incredibly fast to meet this demand, and it’s the right time for Warburg Pincus and The Heritage Group to invest in our brand. Their networks and passion for project investments align perfectly with our vision.”
According to the company, the financing will enable ClimeCo to grow its global project development efforts in areas including reforestation, mangrove restoration, and ocean plastic recovery/reuse, as well as its industrial gas and agriculture methane programs, and to build out its team through organic growth and M&A.
ClimeCo also stated that it is expanding into carbon capture, utilization, and storage (CCUS), and other high-impact, emerging decarbonization asset classes.
Jeff Luse, Principal, Warburg Pincus, and Leela Ramnath, Senior Vice President, Head of ESG, Warburg Pincus will serve on ClimeCo’s board of managers, as well as Chad Peterson, President of Heritage Sustainability Investments, and Peter Lux, President of Heritage Interactive Services.
“We strongly believe in the transition to a low-carbon economy, a shift that builds upon our experience investing in renewables, energy transition, and decarbonization investments for the past two decades. Our investment in ClimeCo underscores our commitment and thesis-driven approach to investing in innovative decarbonization platforms.”
“The Heritage Group has been working closely with the ClimeCo team for several years, and this latest investment symbolizes our optimism about the continued growth of this platform and its efforts toward decarbonization.”