Investors Purchase Half of Climate Change Capital

Reuters reports that investors have aquired one half of Climate Change Capital, one of the largest carbon credit investment firms based in London.  The investors are Alliance Trust PLC, a UK investment trust, the Universities Superannuation Scheme, a UK pension fund, SNS REAAL N.V., the Dutch-based banking and insurance business and Japanese trading house, Mitsui & Co Ltd.  The combined investment has been estimated at $ (US) 110.1 million.

The carbon investment firm has been a leader in investing in projects that produce carbon credits, known more specifically as Certified Emission Reductions, under the Kyoto Protocol.  The company has expaned their investments, with 250 million euros under management for investing in clean technology, clean fuels and renewable energy, much of which is invested in UK-based wind farms.

Climate Change Capital is reportedly the third largest owner of carbon credits in the world with an estimated 91 million tonnes of carbon dioxide (CO2) equivalent under ownership, behind the Paris-based chemical company Rhodia and the Italian utility ENEL.  If those credits trade at over 16 euros per tonne in a secondary market where delivery is guaranteed, the value would be over 1.4 billion euros.