TEM Announces Pioneering Carbon Credits Collateralized Trading Facility

TEM Announces Pioneering Carbon Credits Collateralized Trading Facility - Carbon Herald

Tasman Environmental Markets (TEM), Asia-Pacific’s largest carbon offset provider, today announced it has secured refinancing via a pioneering collateralised trading facility linked to carbon credits.

The successful two-year $10 million refinancing of TEM’s trading facility is part of an agreement with Catalytic Impact Capital. This agreement includes an additional $2.5 million in funding arrangements for TEM.

Jessica Dwyer, CEO of TEM, said: “We believe our collateralised trading facility linked to carbon credits is a world-first. It is an exciting moment, not just for TEM, but also the broader industry.

“It is widely agreed that Australian Carbon Credit Units (ACCUs) are a key tool for Australia’s carbon emission reduction efforts. This agreement shines a light on the fact that ACCUs can be more than just offsets on the path to net zero – they have value beyond this as a ‘financial product’. ACCUs can be a valuable class of collateral that can be used as security to finance net zero initiatives.”

Relevant: Thallo Releases Carbon-As-A-Service API Offering Carbon Credits To Customers

Catalytic Impact Capital CEO, Paul Byrne, who structured and arranged the transaction, has been involved in other world-first transactions, including the world’s first green bond from an insurer and the world’s only additional tier 1 (AT1) gender equity bond, said: “TEM is leading the way for the industry with this innovative approach. Today’s milestone represents the opening up of a financing avenue that heretofore did not exist.

“It shows there is a way to monetise carbon credits on balance sheets without selling them – they are a financial instrument that can be used to optimize balance sheet funding.”

The refinancing announced today will help fund TEM’s ambitious growth strategy. Dwyer explains: “This refinancing will give us a solid financial position to take advantage of current market opportunities.

“We appreciate the continuous strong support from our shareholders and financial stakeholders as we continue to develop TEM over the coming years,” Dwyer adds.

Byrne commented: “The successful refinancing of this loan reflects our view of TEM as a high-performing company, backed by a leadership team with solid experience and we are proud to partner with them.”

Read more: Crediting Carbon Credits: The Case For Forest Conservation Carbon Projects

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