New firm led by former Bank of America executive is one of the private sector’s largest efforts to grow the carbon-offset market
Nov. 29, 2022 6:00 am ET
Private-equity firm TPG Inc. TPG -2.29%decrease; red down pointing triangle has recruited former Wall Street power broker Tom Montag and partnered with several blue-chip companies to launch a carbon-credit business it hopes will add transparency and boost growth in the nascent market for emissions offsets.
The firm is investing $300 million into the new company, called Rubicon Carbon, and is aiming to raise a total of $1 billion to kick-start the effort. Rubicon Carbon is intended to give buyers a simpler and safer way to invest in carbon credits.
Mr. Montag, who retired last year as chief operating officer at Bank of America Corp., is the new company’s chief executive officer. Former BofA colleague Anne Finucane, who retired at the same time as a vice chair, is Rubicon’s chairwoman.
The investment represents one of the private sector’s largest efforts to expand the roughly $2 billion market for voluntary carbon credits that companies buy to offset their carbon emissions. Bank of America, the venture arm of JetBlue Airways Corp., and NGP Energy Capital Management have committed to invest in the new firm. General Electric Co., Honeywell International Inc. and McKinsey & Co. are among the companies helping launch the platform.
Carbon credits are seen as an important way to funnel private-sector money into efforts to limit climate change. They are typically tied to projects that preserve forests or replace fossil fuels with renewable energy in emerging markets.
The market was a main focus of the recent global climate summit in Sharm El Sheikh, Egypt. Negotiators are counting on the market to grow significantly to generate cash needed to fund climate initiatives. Continue to The Wall Street Journal for the full article.
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