Carbon credit developer Bluesource and renewable natural gas marketing and environmental commodities company Element Markets announced today that they are merging to form the largest marketer and originator of carbon and environmental credits in North America.

The combined company will be majority-owned by global alternative asset firm TPG’s impact investment platform TPG Rise. The investment comes through a significant new commitment from TPG Rise Climate and additional investment from The Rise Fund. The Rise Fund acquired Element Markets in January 2021. TPG launched Rise Climate early last year and announced in July that it had raised $5.4 billion at its first close, with a $7 billion hard cap.

Angela Schwarz, President and COO of Element, and CEO of the newly combined entity, said:

“Uniting Bluesource and Element Markets represents the realization of our shared vision to achieve a decarbonized future through quality, trust, and accountability in our environmental products and services. Environmental action cannot wait, and as a combined firm we are positioned as the global leader in driving integrated climate solutions for public and private organizations around the world.”

Bill Townsend, Head of Strategy and Business Development of the new combined entity, added:

“Both our companies were started with the intent of making a difference in the world and responding to the challenges of climate change with integrity and authenticity. Each of our companies has led in the evolution of the market, managing climate risk through the development of innovative solutions. Bluesource’s success has grown in step with that of Element Markets’ and we look forward to what we will accomplish together for our planet.”

The combined entity will create the largest marketer and originator of carbon and environmental credits in North America, and one of the largest in the world. Element Markets will bring its position in low carbon fuels and GHG markets, and Bluesource will provide its expertise in nature-based solutions, project development, capital formation and advisory services to create a vertically integrated climate-focused company to accelerate the fight against climate change.

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.

Mike Stone, Chief Investment Officer of TPG Rise, said:

“Delivering quantifiable greenhouse gas emissions reductions is core to the TPG Rise mission. Our conviction around the carbon credit market has only grown stronger since our initial investment in Element Markets and adding Bluesource allows us to continue to meet the increasing demands of the marketplace.”

Marc Mezvinsky, Business Unit Partner in TPG Rise, added:

“Combining Element Markets and Bluesource will allow us to channel much-needed capital and solutions to deliver a robust supply of third-party-verified credits via nature-based sequestration, avoided nature loss, methane destruction, low carbon fuels, and new and innovative pathways.”