ImpactAlpha, July 27 — The partnership is an example of how rising prices for carbon credits are making more conservation initiatives investable (see, “That feeling when investors realize carbon is going to $100 a ton sooner than they expected”).
The partnership between Hartree, an energy commodities trader and Wildlife Works, based in Mill Valley, Calif., aims to catalyze $2 billion through the sale of ‘verified emission reductions’ on the REDD+ (for Reducing Emissions from Deforestation and Degradation) carbon marketplace.
The 20 projects in Africa, Asia and Latin America will preserve at-risk forests and wildlife and create economic opportunities for local communities.
With Hartree’s backing, “We can implement our just and inclusive climate, community and biodiversity solutions in many more forest communities where they’re desperately needed,” said Wildlife Works’ Mike Korchinsky.
Once the projects are completed in 2023, the portfolio is expected to generate credits for emissions reductions of 20 million tons per year, or 600 million tons over its 30-year lifetime.
The credits will be marketed by Wildlife Works’ partner Everland and Vertree, a joint venture between Hartree and impact investor SYSTEMIQ.
Hartree’s commitment “will help give forest governments, landowners, and communities long-term financial confidence as they consider valuing their standing forests under REDD+,” said Everland’s Gerald Prolman.