Key Carbon, a permanent capital vehicle dedicated to building a diverse portfolio of high-integrity carbon credit streams and royalties, has announced a strategic partnership with Marex Group.
While the size of the deal was not disclosed, sources close to the deal state the company raised $15m. This funding includes a $5m investment and $10m of carbon financing for carefully-sourced offset projects.
The funding round brings Key Carbon’s a valuation to $250m, the sources said.
This partnership includes Marex taking a minority stake in Key Carbon. The partnership has enabled Key Carbon to secure a substantial investment aimed at enhancing the production and distribution of low-emission, affordable cookstoves throughout Africa. This initiative is conducted through Global Cookstoves, a joint venture with BURN Manufacturing.
To date, Key Carbon has invested $45m in Global Cookstoves to boost the deployment of vital projects across eight African countries.
Key Carbon focuses on sourcing and financing carbon credit projects while offering continuous governance, monitoring, and operational support to ensure project integrity.
The funds from Marex will be utilized to finance over 1.5 million biomass-fuelled cookstoves in Africa, projected to improve the lives of roughly 7.5 million people. These cookstoves, along with other initiatives by Key Carbon, are anticipated to prevent or eliminate more than 46 million tonnes of carbon dioxide or equivalent emissions.
Luke Leslie, co-founder and CEO of Key Carbon, highlighted the importance of the partnership, stating, “This latest partnership is a powerful endorsement of our approach to investing in the VCM and demonstrates our ongoing ability to attract meaningful funding in a challenging market through our robust approach to sourcing and governance. Partnerships like this will be critical to accelerating climate action and delivering tangible benefits to vulnerable communities.”
Bastien Declercq, head of environmental at Marex, also commented on the strategic benefits of this alliance, noting, “This partnership will allow us to further diversify our emissions offering and give us access to a new range of market participants that we can service through our comprehensive platform. Reliable access to trustworthy sources of carbon credits has held the market back in the last few years. By moving up the value chain we can play a more relevant role for our clients in helping them to transition to a greener future.”
Keep up with all the latest FinTech news here
Copyright © 2024 FinTech Global
