Singapore, 19th October 2022: Carbon Growth Partners (CGP), an Australia-based investment company specialising in international carbon markets, today announced it had secured a US$10m investment from Silverstrand Capital for its second fund, the Carbon Growth Fund.
The announcement was made at an event held in Singapore to discuss the evolution of carbon as an investment opportunity and solutions to the challenges of global scale-up in carbon markets.
Carbon markets are a critical component in reaching the net zero pledges made in Glasgow at COP26, particularly for hard-to-decarbonize sectors and products, and provide a vehicle for businesses of all sizes to play their part in delivering a global climate solution.
CGP invests in a range of high-quality carbon reduction initiatives which also have a positive impact on local communities, and in 2021 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,” commented Rich Gilmore, Chief Executive Officer 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.”
Carbon Growth Projects
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.
The CGP team has developed a comprehensive framework to evaluate these credits, which not only takes into consideration environmental factors but also 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 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,” said 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.”