Climate Trust Capital is a for-profit investment manager owned by the mission-driven nonprofit, The Climate Trust. In 2016, Climate Trust Capital launched a $5.5 million pilot carbon investment fund providing upfront capital to U.S.-based forestry, grassland conservation, and livestock digester projects based on their ability to generate offsets. Climate Trust Capital anticipates marking a fully invested Fund I in 2018.
We are committed to preventing a disastrous rise in global temperatures by investing in quality projects that accelerate the pace of carbon mitigation. We value air, water and soil through the financing, development and sale of qualified offsets and a relentless investment in people and projects with environmental purpose.
With our two decades of experience in carbon markets, building proficiency in developing and monetizing carbon offsets, The Trust is well positioned as an investor and carbon manager. The development of our successful pilot carbon investment fund evolved from acumen gained as the administrator of the Oregon Carbon Dioxide Standard—the first U.S. law aimed at reducing carbon dioxide—acquiring carbon offsets, and selecting and managing pollution reduction projects on behalf of regulated utilities. The Trust is considered the oldest carbon entity in the nation.
Since its inception, The Trust has managed over $47 million in carbon projects that are expected to reduce 6 million tons of carbon dioxide across a broad array of sectors. That’s equivalent to the carbon sequestered by more than 7 million acres of U.S. forests in one year, or put another way, more acreage than the entire State of Maryland. These numbers are apart from any emissions reductions expected from projects in our Climate Trust Capital Fund I portfolio.
Climate Trust Capital leverages four distinct traits in deploying investments; traits that deliver for our project partners and investors.
A deep technical and sectoral knowledge: Our experienced team will perform exhaustive due diligence, guiding investments into qualified carbon projects for higher impact.
Active management: Our team takes an active role in supporting projects to ensure optimal performance and the expected yield of credits, with a particular focus on stewarding the project through the monitoring, reporting, verification and sale of credits.
Reputation for integrity: The Trust’s reputation for environmental integrity and innovation has made it a trusted partner to buyers in both the compliance and voluntary carbon market.
Preferred Supplier: The Trust has a reputation for integrity and has successfully sold close to $10 million in offsets with a diverse number of voluntary and compliance buyers. We have established relationships with several companies allowing us to smoothly transact the offsets in our portfolio.
Investments align with our conviction that carbon prices are undervalued and have the potential to provide investors with attractive, long-term, risk-adjusted returns, while also combating a dangerous rise in global temperatures.
By using The Trust’s existing programs to mitigate the policy and market risks associated with emerging environmental markets, Climate Trust Capital’s investment fund demonstrates how limited, but precious, public support can be used to mitigate risks in order to leverage the investment of private capital at scale.
Because investments are repaid through credits that represent a verified reduction in greenhouse gas emissions, Fund I ties financial performance directly to verified environmental performance. Not only does this create a new source of capital for conservation projects, we believe that making environmental credits a financeable asset class can result in paradigm shifts to help restore and protect our planet.
“The Climate Trust’s unique ability to provide upfront capital in combination with taking out-year price, production and regulatory risk is exactly the type of offering that many long-dated emission reduction projects need to get on their feet. Applied to the right project, it really plows through the regulatory uncertainty in the market today.”