Australian VC firm Carbon Growth Partners (CGP) has received US$10 million from Singapore’s family office Silverstrand Capital.
Carbon Growth Partners, an investment company specialising in international carbon markets, raised the capital for its second fund, Carbon Growth Fund.
CGP invests in high-quality carbon reduction initiatives that positively impact local communities. It invests in projects across four continents, with 80 per cent located in developing countries.
A large portion of the fund’s strategy focuses on high-quality, nature-based carbon credits. The Carbon Growth Partners team considers environmental factors and seeks to ensure an equitable share of the sales of credits returns to local communities.
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 more than 75,000 hectares of reforestation, 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.
“Carbon credits provide a way to deliver finance to the people and places that need it the most and which can have the most positive impact on climate change,” commented Rich Gilmore, CEO of Carbon Growth Partners. “In 2021 alone, we were able to raise US$100 million in investment for emissions reduction projects, and our new Carbon Growth Fund will help us do more of the same.”
“The focus of our impact investment strategy is to address the biodiversity crisis,” said Kelvin Chiu, Principal of Silverstrand Capital. “The carbon markets effectively 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.”
Carbon markets are a critical component in reaching the net zero pledges made in Glasgow at COP26, particularly for hard-to-decarbonise sectors and products and provide a vehicle for businesses of all sizes to play their part in delivering a global climate solution.
Last month, Silverstrand Capital and The Meloy Fund invested in Koltiva, an Indonesia-based tech startup focused on agriculture supply chain.
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