Carbon Neutral Royalty Ltd. – a permanent capital vehicle that finances projects in the Voluntary Carbon Markets, announced it has closed its latest facility worth an aggregate of up to C$25 million ($18.3 million) with Beedie Investments Ltd. (Beedie Capital) – a capital firm that invests in companies that positively influence the well-being of people and community.
The funds raised are said to be used to finance commitments with existing partners and pipeline projects of Carbon Neutral Royalty. The projects that the company supports are mitigating climate change while helping local communities. Some of them involve the planting of 3.75 million mangroves in Asia and the funding of 926,925 fuel-efficient cookstoves distributed across eight countries in Africa.
The company was founded in 2021 by an experienced team in the voluntary carbon markets. It is working to assemble high-quality carbon credit-generating projects worldwide with a mission to accelerate climate action and biodiversity.
Its business model involves partnering with project developers and prepayments in return for a share of future carbon credits. Its long-term partnership agreements are said to ensure that it has secure and enduring access to high-quality carbon credits.
“By allocating investment based on our own analysis of the VCM and using innovative structures, CNR seeks to encourage the flow of much-needed funding to high impact projects… The proceeds from this Placement will progress current commitments, whilst also helping to fund future projects where we see real benefits for biodiversity and communities, often in the most climate-vulnerable geographies,” said Luke Leslie, CEO of Carbon Neutral Royalty.
Back in 2022, the investment vehicle also partnered with Worldview International Foundation for exposure to over 100,000 hectares of tropical wet, mangrove restoration areas with the potential to generate over 70 million verified carbon units over the life of the projects.