Carbon Growth Partners (CGP) has closed its second fund with a $US10 million cornerstone investment from Silverstrand Capital, a family office based in Singapore.
The capital injection will help the firm continue to finance a global portfolio of high-impact carbon reduction projects. In 2021 it financed the removal or reduction of 25 million tonnes of emissions.
“Carbon credits provide a way to deliver finance to the people and places that need it the most and which can have most positive impact on climate change,” says Rich Gilmore, CEO of Carbon Growth Partners.
“In 2021 alone, we were able to raise US$100m in investment for emissions reduction projects and our new Carbon Growth Fund will help us do more of the same. We are excited to be working with Silverstrand Capital, a kindred spirit in impact investing.”
With more than 80% of funded projects located in developing countries, the tam at CGP have developed a rigorous process to evaluate the projects and ensure the carbon credits produced represent genuine carbon removal. While also considering the share of income that flows back to local communities.
“CGP invests in projects across four continents with 80% located in developing countries. A large portion of the fund’s strategy focuses on high quality, nature-based carbon credits.” Explains the CGP release.
“One example is the Delta Blue Carbon initiative in the Sindh Indus Delta in the south of Pakistan, home to the world’s largest area of arid climate mangroves. This unique habitat provides shelter to unique fish and shrimp species, invertebrates, turtles, migratory birds and coastal area floral species. In response to widespread deforestation, the government-backed project has seen reforestation of more than 75,000 hectares with a conservation program protecting a further 100,000 hectares. The project is yielding extensive co- benefits with hundreds of jobs created alongside clean water, education and health programs for local communities.”
“The focus of our impact investment strategy is to address the biodiversity crisis,” says Kelvin Chiu, principal of Silverstrand Capital.
“The carbon markets are an effective way to channel additional financial resources to important nature conservation projects that benefit local communities. The long-term supply deficit in carbon credits also makes it a financially compelling investment. Rich and his team have deep expertise and experience in the carbon space and we are proud to anchor their second Fund.”