An Australia-based investment company called Carbon Growth Partners received a $10-million investment from Singapore-based impact investor Silverstrand Capital for its Carbon Growth Fund. It managed to raise $30 million out of its $100 million initial target.
The fund aims to support projects that protect and restore nature while generating investment returns. The projects, for example, deliver co-benefits to forests, grasslands and wetlands, and the people who rely on them.
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It will invest in “highest integrity” carbon credits, such as those issued by the Verified Carbon Standard (Verra) and the Gold Standard Foundation.
The Carbon Growth Fund requires a minimum investment of $500,000 and has a targeted return of 20% per annum after fees. According to Carbon Growth Partners, target returns will be generated through long-term capital appreciation and through value investing in mispriced assets.
The capital will mainly be allocated across three categories of verified carbon credits: nature-based solutions, renewable energy or activities that replace fossil fuels with clean energy sources, and household devices – activities that reduce energy demand at the household level.
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