Leading environmental markets and climate solutions firm STX Group and Base Carbon (NEO: BCBN) (OTCMKTS: BCBNF), a key player in financing emission reduction and climate action projects, have signed a letter of intent (LOI) to launch an innovative carbon investment vehicle.
This collaborative effort aims to pioneer carbon removal projects that adhere to scientific rigor and asset-backed solutions, addressing the growing demand for high-quality carbon removals driven by global net-zero climate commitments.
The inaugural investment vehicle, part of an ongoing series, seeks to provide global market participants with a unique approach to engage in the burgeoning market for high-quality carbon removals, STX and Base Carbon said in a joint statement on Monday.
Focused on greenfield carbon solutions, the initiative will prioritize robust quantification, scientific durability, community engagement, sustainable development co-benefits, and governance practices in alignment with industry standards, local regulations, and the Paris Agreement.
STX Commodities, leveraging its global team and market access, will contribute project origination, development, and marketing services, ensuring the integrity and scalability of the investment vehicle.
Meanwhile, as the fund manager, Base Carbon will utilize its investment platform and corporate infrastructure to explore new revenue streams without additional shareholder dilution.
Investor marketing and discussions with project offtakers are expected to commence in early 2024.
“We are excited to team up with Base Carbon to provide opportunities to our counterparties who seek to diversify their portfolio and invest in carbon projects of high caliber,” STX Group’s Chief Commercial Officer Marijn van Diessen said in a comment.
Base Carbon’s CEO Michael Costa also expressed enthusiasm about the joint initiative, stating it represents an “important and exciting new business venture” for the company.