The Climate Trust – Project Financing
Invest with a Purpose
About the Company:
Building upon a legacy of innovation and leadership in the carbon market, The Climate Trust accelerates the pace of carbon mitigation through conservation ﬁnance. We value air, water and soil through the development, purchase and sale of qualiﬁed oﬀsets and a relentless investment in people and projects with environmental purpose.
About the Solution:
We’re looking for people and projects to invest in. Realize the value of your carbon project today.Climate Trust Capital, an independent firm of the mission-driven nonprofit The Climate Trust, has launched a first-of-its-kind investment fund to commit $5.5 million into innovative, U.S.-based carbon offset projects in forestry, grassland conservation, and livestock digesters. Fund I will be the first in a series of Climate Trust Capital-led investment funds built to appeal to institutional and impact investors. Our active involvement with projects accelerates deeper greenhouse gas reductions and helps to create healthy yields of credits and fruitful revenues from their sale. What We Offer Climate Trust Capital is assembling additional impact investment dollars into the carbon fund. We provide upfront finance based on the ten-year value of carbon credits from your project. The upfront investment can be used as a substitute for equity to finance project costs like construction, development or land acquisition. This is a guaranteed minimum carbon value for you! When credits are generated, we will sell those on your behalf at the highest possible premium—capitalizing on our buyer network—and share the proceeds after recouping our initial upfront payment. This arrangement is in place for 10 years, and in the 11th year, 100% of credit proceeds go to you. This revenue share rewards project owners as carbon prices increase over time. Climate Trust Capital also provides the appropriate level of technical support to ensure optimal project performance. This includes developing a carbon-monitoring plan for data collection, data aggregation, and verification.
Solution Strengths, Weaknesses and Critical Indicators
Consultants, Developers & Service Providers:
- Can be an integral part of a project team
- Generally used to provide specific expertise or to reduce the responsibility or risk
- Most projects have at least some Consultants, Developers and Service Providers
- Consultants are generally hired to oversee or advise in a specific area of expertise
- Developers usually are responsible for the entire project
- Service Providers typically provide services in a particular area of expertise
- No Consultant, Developer or Service Provider can make a bad project successful
The Climate Trust has not been evaluated using Newtrient's 9-point scoring process because, although their services and offerings are not technology related but of a financial nature. Newtrient will continue to work with the Climate Trust to further refine the Newtrient 9-Point system as well as evaluating their programs related to the dairy industry.
1. OPERATIONAL HISTORY