Carbon funds pool financial resources from companies and other investors to invest in carbon assets. They generate returns for investors in the form of carbon credits from projects. By pooling investments, investors can mitigate investment risk.
Why carbon funds? Shrinking supply and increasing demand
As more and more companies embark on a net zero carbon path or are subject to carbon regulations, the demand for carbon assets - particularly carbon removal credits - is skyrocketing.
At the same time, the carbon asset supply, particularly for removals, is drying up. Project developers are requesting advance payments to give carbon asset rights to buyers.
With high demand and low supply, companies risk having to pay high carbon prices to meet regulatory requirements or to meet their net zero commitments in 10-20 years.
Therefore, investing in a carbon fund today is a sound investment and carbon price risk hedging strategy.
South Pole as trusted partner
South Pole has been managing a range of carbon funds for private and public entities for over a decade, with US$ 300 million under management (e.g carbon funds and portfolio for Portuguese, Swiss and Austrian governments and private sector). In addition to this track record in fund management, we have 14+ years of first hand experience of working in carbon markets:
Identified and developed 700+ carbon asset projects, and mobilised US$ 10 billion in private investments.
Over a decade of technical experience in all major carbon standards and project types
Sound fund governance based on globally accepted standards
Demonstrated carbon impact and delivery track record with the equivalent of 80 million tCO2 delivered over the past 10+ years
Which carbon funds does South Pole offer?
South Pole works with clients across the private, public and non-profit sectors to develop, structure, implement and manage impact funds in the areas of Energy, Land & Water or Technology & Industry.
Funds currently available for investment or under development include:
Carbon Removal Fund: Investing in carbon removal projects that provide high quality removal credits
Energy Access Fund: Investing in renewable energy and energy efficiency projects with high social impact and co-benefits, such as for schools, hospitals, small business, and low-income households, against the future delivery of carbon credits and renewable energy certificates.
Plastic Action Fund: Providing upfront investment in projects that reduce plastics and provide plastic credits