Carbon credit company Rubicon Carbon, backed by alternative asset manager TPG, announced it would raise $1 billion and become a separate entity. The firm was initially backed by TPG Rise Climate with $300 million.
Bank of America, JetBlue Ventures, and NGP ETP will all participate in Rubicon’s initial equity financing. With these funds, together with the TPG Rise contributions, the carbon credit company aims at a total capital raise of $1 billion. Following the funding, TPG will remain Rubicon’s majority owner.
Rubicon strives to provide easier access to the CO2 market by vetting projects and their credits. The firm will offer a technology-driven method of analyzing, monitoring, and reporting that decreases company costs.
Rubicon’s first product, the Rubicon Carbon Tonne (RCT), provides enterprise customers access to proprietary sets of both nature and industry-based carbon credits. RCTs will be initially backed by verified CO2 credits amounting to 20 million tonnes of carbon removed from the atmosphere.
The carbon credit firm will allocate part of the $1 billion funding to establishing a financing solution named Rubicon Carbon Capital.
“Rubicon is designed to be the market-based solution that allows both the supply and demand side of the global carbon market to scale responsibly,” said the firm’s Chairwoman, Anne Finucane. “We look forward to working in cooperation with a growing consortium of businesses, governments, and foundations to accelerate the flow of capital to real emissions reduction solutions.”
Dr. Jennifer Jenkins, who is a co-recipient of the Nobel Peace Prize for her work on climate, will be the Chief Sustainability Officer at Rubicon. She said that as the demand for CO2 credits goes up, “so too should the size and quality of the projects that underpin the carbon market.”