Introduction
Landmark carbon removals finance deal signed
Carbonaires completes first of a kind carbon finance transaction, collaborates with UBS and The Carbon Removers
Carbonaires, the leading London‑based carbon finance specialist, announces a ground‑breaking product offering with a lead transaction that aims to provide returns to investors from the sale of carbon removals credits generated by removing carbon dioxide from the production and supply chain of the Scotch whisky industry. Global bank UBS and The Carbon Removers, the Scotland‑based carbon removal company, collaborated with Carbonaires on this innovative pilot product.
This first‑of‑a‑kind transaction is expected to generate approximately 134,000 carbon removals credits over a time span of several years, based on analysis conducted by Carbonaires.
The product, which is available to professional investors only, offers returns from carbon removal credits, which are measured, managed and verified with due diligence developed from the financial services and insurance sectors. The credits will be verified by Puro Earth, a specialist carbon removals certifier and registry. The investment structure makes use of capabilities of the Carbonplace platform, a carbon credit transaction network and settlement technology originally founded by leading banks.
Carbonaires were instrumental in structuring the deal and introduced the project developer, The Carbon Removers. The transaction is underpinned by removals credits and constitutes a segment of the carbon markets that is forecast to experience growth in demand according to McKinsey analysis, given the role they may be able to play compensating for emissions that cannot be abated, alongside credible climate targets, when they are verified in accordance with international standards.
Further to this collaboration, UBS also supports the development of emerging climate technologies with landmark commitments with Climeworks, NextGen and Neustark for high‑quality technological carbon removals.
Carbonaires has been proud to structure this offering with UBS. Widening access to investment opportunities in the voluntary carbon market has been needed for some time, and it feels great to have had a hand in developing that process. It is fair to say that we expect significant new capital flows into carbon removal project investment on the back of this new way of investing.
— Alison Barto, Chief Partnerships Officer, Carbonaires
Our primary interest in this investment with UBS is commercial, as with all the deals that we do. Our strategy includes backing new technology and innovations, both of which are involved in this offering. The juxtaposition of big global names and newer players in the deal underpinning the offer is, for us, a blend of both innovation, trust and stability. We also see the value of investing in the green economy, as we are a multigenerational family office with a mandate to develop strategies that encompass a longer‑term outlook.
— Cem Tufekci, Principal, Pakua Capital
We continuously work with our clients to develop innovative climate finance solutions that enable them to support the transition to a low carbon economy. Financial innovation as demonstrated through this first‑of‑a‑kind carbon transaction is critical to ensure emerging climate technologies attract the funding at the speed and scale required to build a negative emissions industry.
— Kevin Arnold, Executive Vice Chairman, UBS
We are a carbon removal company. This recent UBS investment not only expands our projects but directly integrates UBS customers into carbon dioxide removal today, while bringing to the market permanent and measurable Carbon Removal Credit. This is a climate positive statement to the international banking world and a mechanism that allows The Carbon Removers to further deploy technology.
— Richard Nimmons, CEO, The Carbon Removers
We welcome the opportunity to work with UBS on this offer and with Carbonaires and The Carbon Removers to provide high‑quality supply and liquidity in the voluntary carbon market. Providing high‑quality supply and liquidity in the voluntary carbon market is a clear priority for Carbonplace, and this new collaboration can be successful in addressing that challenge.
— Scott Eaton, CEO, Carbonplace
