Macquarie invested in carbon offset consultancy EP Carbon to advance its voluntary carbon offsets business and support the latter’s expansion.
Macquarie’s “Global Carbon” division provides integrated carbon offsetting solutions across the entire offset lifecycle from generation to retirement. It also offers clients greater access to compliance and voluntary carbon credits.
The company also provides solutions that bring capital to carbon removal and reduction projects across the globe.
Macquarie’s investment in EP Carbon, a US-based carbon offset consultancy firm, seeks to drive climate solutions.
Supporting the Growth of Voluntary Carbon Credits
Macquarie’s investment comes as demand for carbon offset projects is seen to rise even more over the next several years. This is due to the growing corporate pledges to reach net zero emissions.
Companies consider carbon credits, also known as carbon offsets in the voluntary carbon market, as a bridge to reducing their absolute emissions.
Offsets also provide near-term solutions to emissions that are difficult to avoid.
And this is where EP Carbon comes in to deliver those solutions. The firm advises on the feasibility and design of nature-based carbon offset projects.
It also provides leading technical advice in the space including assistance with:
- geospatial analysis,
- project risk mitigation, and
- capacity-building for project implementation.
EP Carbon focuses on forest conservation projects. These projects reduce carbon emissions from forests through sustainable conservation and restoration activities.
The company uses carbon markets to monetize the avoided emissions through healthy forests. Carbon credits fund their conservation efforts while providing a long-term source of revenue.
To date, EP Carbon has the following achievements:
Examples of carbon offset projects that EP Carbon support include:
- The Rimba Raya Biodiversity Reserve Project in Indonesia
- REDD+ Project for Caribbean Guatemala
- Mutatá REDD+ Project in Colombia
Speaking for the partnership with Macquarie, Managing Director of EP Carbon Sam Frankel remarked that:
“EP Carbon is a passionate team of foresters, environmental scientists and international development professionals… We’re excited to combine our tested expertise building the highest quality nature-based carbon projects with Macquarie’s comprehensive market insight and global reach…”
He also said that the investment will help them serve more projects, and deliver more climate impact while improving livelihoods.
EP Carbon will use the proceeds from Macquarie’s investment to develop its technology suite further, hire and train carbon technical experts, and fund its new “Toll” service plan.
Driving Climate Solutions
How much Macquarie invests in EP Carbon is not disclosed. But the infusion of capital will help increase access to climate finance.
According to Erik Petersson, the Head of Macquarie’s Global Carbon:
“As a trusted name in the industry, our investment will also deepen the technical decarbonization expertise Macquarie provides its clients as the global energy transition accelerates…”
Macquarie has a proven track record in low-carbon global transition, developing innovative solutions in carbon and emissions.
Its newly formed Global Carbon business will focus on the growing voluntary and emerging carbon markets. It offers a full suite of market-leading investment, supply, and risk management solutions in carbon markets.
In line with companies’ climate commitments, Macquarie invests in carbon reduction and removal projects to help grow the market and drive more climate action.
Its global platform will help EP Carbon deliver a range of services to carbon offset projects around the world.
Macquarie Global Carbon and EP Carbon will work closely together to establish a pipeline of high-quality carbon offsets.