Carbon Offset Fund
Total return from project finance investments in global carbon offset markets
Klimaworks Ventures offers investors exposure to carbon credits by acquiring, managing and growing a high quality and diversified portfolio of investments in projects and/or companies that generate or are actively involved, directly or indirectly, with voluntary and/or compliance carbon credits.
We aim to accelerate the world’s transition to a net-zero carbon future by bringing capital to projects that might not otherwise be developed.
The Fund intends to enter into contractual agreements with individuals, companies and governments by making an upfront payment plus ongoing delivery payments in return for the right to receive a fixed percentage of future carbon credits generated over the life of the project. An additional per-carbon credit delivery payment may be paid to the project developer or owner when the carbon credits are delivered or monetized in the voluntary carbon market.
The Fund may also purchase carbon credits directly in the voluntary and compliance markets or make investments into entities, assets or properties involved in the origination, generation, monitoring or management of carbon credits.
The Fund plans to diversify its exposure in the carbon markets by investing in projects and/or companies in a number of different geographical areas and different carbon project types.
Apporach and Sourcing
Klimaworks curates a pooled and bespoke portfolio of high-quality carbon credits with multi-year streams of carbon credits. This incorporates diversification, transparency, and security of future supply and pricing. The portfolio can be diversified by geography, project type, SDG impact area and sector.
We source projects and conduct our own due diligence ensuring quality, integrity and local impact. All projects are certified to the highest standards. Klimaworks has identified projects and project platforms totaling over 1Gt (1 billion tonnes) of potential carbon offsets.
Our portfolio focus is on nature-based climate solutions (forest, soil and blue carbon) but we can also include technological solutions such as waste management, renewables and energy efficiency. We are exploring opportunities in carbon capture and storage.
Nature-based solutions help to mitigate climate change as well as bringing about positive and measurable economic, social, and environmental benefits to local areas and people. Buyers of these carbon credits are able to advance and track to both their climate (e.g. net-zero) and sustainability (e.g. UN SDGs) targets.
Klimaworks’ proposition creates win-win solutions for both carbon credit buyers and project developers.
As an institutional counterparty, Klimaworks provides carbon buyers with access to diversified projects, the certainty of future supply and price, and alleviation of reputational risk.
For project developers, acting as principal, we provide long-term underwritten contracts.
Our contracts ensure transparent, equitable revenue shares flow back to project developers and communities creating alignment and connectivity.
Using carbon credits to offset should not come at the expense of reducing one’s own emissions but are a vital stepping-stone towards the decarbonization of the global economy as low-carbon and carbon-reduction technology is developed and deployed at a greater scale.
Capital market solutions that enable long-term partnerships and align the interests of
carbon credit project developers, buyers and capital providers.
Studies indicate that significantly higher carbon prices are needed by 2030 to meet the goals of the Paris Agreement
Prices for carbon credits anticipated to rise due to increased demand from growing number of participants
High Quality &
Portfolio of carbon credits streams and investments in world-class carbon offset projects
Aim to provide exposure to various types of carbon offset projects
Projects may also have social and economic co-benefits in addition to reducing emissions in order to reach sustainable impact beyond climate action, which may garner a premium in the market.
Mitigating climate change by bringing capital to projects that otherwise might not get developed
Some projects may also contribute to one or more of the UN’s Sustainable Development Goals
ESG benefits for investors looking to make an impact with their investment dollars
Direct Exposure to
Carbon credits can only be legitimised if they are done well. In short this means matching high integrity demand with high quality supply:
High integrity demand
• Follows the mitigation hierarchy of avoid, reduce and offset
• Carbon credits are a compliment to, not a distraction from emissions reductions
High quality supply
• Certified by a leading third-party agency (eg Verra, Gold Standard)
• Follow the principals of being real, measurable, additional, and permanent
There are a number of initiatives currently underway, such as the Integrity Council for Voluntary Carbon Markets and the Voluntary Carbon Markets Integrity Initiative, put in place to ensure voluntary carbon market integrity for both buyers and sellers.