HomeCarbon CreditsCanadian Pension Plan Invests in Carbon Credits

Canadian Pension Plan Invests in Carbon Credits

The Canadian Pension Plan Investment Board (CPP Investments) and Conservation International announced a new partnership to invest in nature-based climate solutions (including Carbon Credits). This partnership is the first of its kind between a global asset owner and an established NGO.

Their goal is to support the development of high-quality offset projects that will reduce global carbon emissions.  These projects will take place in Brazil, Chile, Columbia, and Peru and span 20 million hectares of land (approximately 49,000,000 acres). This can prevent more than four million metric tons of carbon from being released into the atmosphere each year.

The first project will take place at the Amarakaeri Communal Reserve in Peru.

“We’re very excited to form this unique partnership with Conservation International, one of the world’s leading conservation organizations with a strong scientific focus and operating expertise,” said Bruce Hogg, Managing Director and Head of the Sustainable Energies Group at CCP.

“This new partnership adds to our investments in important and growing industries that help enable the energy evolution through our Innovation, Technologies and Services strategy, in support of our Sustainable Energies program and overall investment mandate.”

All projects will be verified under a United Nations-backed framework called the Reduced Emission from Deforestation and Forest Degradation (REDD+) program.

Agustin Silvani, Senior Vice President of Conservation Finance at Conservation International, said, “Together with CPP Investments, we’re setting our sights on projects that protect nature, reduce emissions, provide sustainable sources of income for local communities, and at the same time are economically attractive. That’s a win-win-win for companies committed to decarbonization, people, and the planet. Our aim with this partnership is to make carbon markets work for the communities that are helping to protect nature and fight climate change.”

CPP will initially contribute $20 million, and Conservation International, $500,000. They expect to expand the partnership to additional investors over time.

This announcement is significant to the carbon credit industry, which has expanded over the past year alone. Designed to offset carbon emissions, improve the environment, and drive economic development, many see carbon credits as part of the answer to combat climate change.

The global carbon market is expected to reach $22 trillion by 2050.

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