(Credit: Canva Pro)Carbon Growth Partners (CGP), a specialized carbon market investor, has reopened its Carbon Growth Fund No. 2., which focuses on investing in carbon credits and offset projects, with a target to raise $200 million by mid-2024, including an initial $20 million before the end of June 2023. The aim of the fund is to provide finance to high-quality, nature-based, and technology-based offerings that accelerate international decarbonization.
The Australian-based company decided to reopen the second fund following the success of its initial offering, the Carbon Growth Opportunities Fund. That fund, in particular, outperformed major asset classes such as cash, stocks, bonds, gold, and cryptocurrency, the company said. Since its inception in July 2021, the fund has generated a commendable 17% return for investors.
CEO Rich Gilmore highlights carbon as one of the most undervalued asset classes, with the potential for significant price increases as companies strive to meet their net emissions reduction commitments. By reopening the Carbon Growth Fund No. 2, CGP enables investors to support high-quality offset projects that drive climate action.
Carbon offset markets play a critical role in achieving net-zero emissions. Recent studies by ratings agency Sylvera and analytics firm Trove Research in 2023 have shown that companies that utilize carbon offsets achieve up to 100% more internal decarbonization compared to those that don't.
CGP's investments have already put more than $230 million into various projects, resulting in the verified reduction or removal of 37 million metric tons of greenhouse gasses. Moreover, these investments have contributed to addressing 15 of the 17 United Nations Sustainable Development Goals, the company said.
By investing in nature-based climate solutions, renewable energy, and efficient household devices, CGP prioritizes projects that align with its comprehensive evaluation framework. This framework ensures the quality, integrity, and positive environmental and social outcomes of the investments while striving for equitable benefit sharing with local communities.
Carbon Growth Partners’ reopening of Carbon Growth Fund No. 2 presents an opportunity for investors to capitalize on the underpriced asset class of carbon. The capital raise for this fund will close on June 30, 2023.
