Eddie Listorti, CEO of Viridios Capital and Tribeca Investment Partners Have Launched a New Joint Carbon Fund Targeting Voluntary Offset Buyers in Asia and Australia

A new joint carbon fund that will target investors in Asia and Australia who are interested in voluntary offsets has been launched.

Viridios Capital and Tribeca Investment Partners have launched a $500 million portfolio of nature-based carbon offset credits under their new company, VT Carbon Partners. Carbon emitters across the world are looking for high-impact and nature-based carbon credits to offset the greenhouse gas emissions they are producing, according to a recent company press release.

“There is a scarcity of high-impact offset opportunities available to companies pledging to decarbonise, particularly for companies that must rely significantly on offsets to address their high carbon emission rates, said Eddie Listorti, the CEO of Viridios Capital.

To that end, the initial portfolio VT Carbon Partners is offering includes forward offtake and issued credits financed by the two new partners.

Officials for the new joint venture also said they might look into compliance markets in the future and will make announcements on plans in the coming months.

As Listorti explained:

“The tie-up with Tribeca Investment Partners to launch our asset management business was a natural move as we expand our service offering — technology and capital markets — to our clients in the voluntary carbon markets.

“It goes without saying that we have the view that the rapid adoption rates we have seen in the carbon markets are indicative that companies need a solution to help with their immediate decarbonisation ambitions, and institutional investors are now seeing that carbon offsets could very well be the next key commodity.”

Over the last two years, the voluntary carbon offset market across the globe has experienced substantial growth. Analysts with Ecosystem Marketplace said that over the summer they expect the market to more than double the amount traded in 2020, and last year’s mark set a new record.

Major oil player Shell recently predicted that number would triple by 2030, to 1.1 billion units.

VT Carbon Partners is looking to capitalise on that enormous market potential. Earlier in the year, Viridios also signed an agreement with S&P Global Platts to develop indices for voluntary offsets that are driven by artificial intelligence software. The indices will seek to price units fairly based on geography and co-benefits.

When companies cannot eliminate or significantly reduce carbon emissions directly from their own operations, they turn to carbon offset credits to help play their part in reversing climate change. Increasingly, nature-based carbon credits are becoming the focus, with projects working to restore, protect and manage some of the world’s most precious ecosystems.

These ecosystems play a vital role in climate change as they suck carbon directly out of the atmosphere. This fact emphasises just how important nature-based investments are if the world wants to truly reach emission benchmarks that are rapidly approaching.

The recent global climate summit in Glasgow, Scotland, focuses on greenhouse gas emissions and carbon offsets. Some critics say fossil fuel producers rely too much on carbon offsets instead of doing anything to reduce emissions on their own.

The industry focused on carbon offsets is working to standardise all carbon contracts, as is being promoted by the Taskforce on Scaling Voluntary Carbon Markets. Some in the industry also suggest there is a solid need to differentiate carbon offset prices based on co-benefits associated with individual projects.

About Eddie Listorti

Eddie Listorti is the Executive Chairman and CEO of Viridios Capital. He has a proven track record with 30 years in business and banking. His experience includes managing teams of over 2,000 people and annual revenues exceeding AUD 2 billion. Mr. Listorti has held board positions in industry bodies and joint venture partnerships.