Carbon finance experts Carbonaires, in collaboration with UBS and The Carbon Removers, have launched a new carbon finance offering that aims to stimulate investments in the carbon removal sector. 

The collaborators partnered on a lead transaction that will aim to provide returns to investors from the sale of carbon credits issued by removing CO2 emissions from the Scotch whiskey industry production processes and supply chain.

According to an analysis conducted by Carbonaires, through this shared effort, the partnering organizations will be able to generate approximately 134,000 CO2 removal credits over a period of several years. 

Offered exclusively to professional investors, the innovative carbon financing product is intended to provide investors with returns from CO2 removal credit verified by Puro Earth and managed with due diligence from the financial services and insurance sectors.

The structure of the investment leverages the capacities of the elaborate carbon credit transaction network provided by the Carbonplace platform.

Powered by engineered CO2 credits, this transaction taps into a promising carbon market sector that has been projected to grow in demand amid the increasing pressure for climate action.

Carbonaires had a lead role in shaping this agreement, and they made the connection with Scotland-based decarbonization company Carbon Removers, who specialize in project development.

Relevant: Carbonaires Locks In Investment From KTM To Scale High Quality Carbon Removal Projects

Alison Barto, Carbonaires’ Chief Partnerships Officer, shared that the company is proud to structure this offering with UBS. 

She commented, “Widening access to investment opportunities in the voluntary carbon market has been needed for some time, and it feels great to have had a hand in developing that process. It is fair to say that we expect significant new capital flows into carbon removal project investment on the back of this new way of investing.”

Conveying a similar sentiment, Kevin Arnold, Executive Vice Chairman, Investment Bank, UBS, stated, “Financial innovation as demonstrated through this first-of-a-kind carbon transaction is critical to ensure emerging climate technologies attract the funding at the speed and scale required to build a negative emissions industry.” 

Read more: CUR8, UNDO, British Airways & Standard Chartered To Finance Carbon Removal