15th November 2024 – We have successfully secured vital financial support through a pioneering carbon finance transaction facilitated by Carbonaires in collaboration with UBS. This innovative initiative will help The Carbon Removers to decarbonise the Scotch whisky supply chain, ultimately benefiting the environment and providing financial returns to investors by delivering carbon removal credits to them.
The transaction represents a significant step in scaling engineered carbon removals, unlocking approximately 134,000 verified carbon credits over several years, as analysed by Carbonaires. These credits are produced by removing carbon dioxide from the production processes of whisky distilleries in Scotland and storing it initially in cement, with plans for future injection into former oil wells and other permanent storage facilities.
The Carbon Removers, will leverage this investment to decarbonise a key UK industry while providing measurable carbon credits, which are increasingly critical in the push for net zero. Our CEO, Richard Nimmons, emphasised: “This partnership with UBS and Carbonaires brings vital financial support to our efforts, directly integrating UBS clients into the carbon removal process. This transaction sets a new precedent for climate-positive investment in the financial community.”
Pakua Capital’s participation, facilitated by UBS, reflects growing confidence in carbon removal investments. The deal was structured by Carbonaires, leveraging their expertise in carbon finance and due diligence, and verified by Puro.earth, ensuring transparency and high integrity. This milestone illustrates how innovative finance can drive investment in technologies essential for achieving net zero emissions.
Alison Barto, Chief Partnerships Officer at Carbonaires, commented: “Widening access to the voluntary carbon market has been a critical gap, and we are excited to have pioneered this opportunity with UBS and The Carbon Removers. This is just the beginning of significant new capital flows that will empower carbon removal technologies and accelerate progress toward net zero.”
UBS’s Executive Vice Chairman of Investment Banking, Kevin Arnold, also highlighted the importance of financial innovation in this sector: “The first-of-its-kind transaction we structured with Carbonaires demonstrates our commitment to developing new pathways for funding climate technologies. With a high internal carbon price of $400 per metric ton applied across our investments, we believe in backing high-quality carbon removal projects that have the potential to reshape the carbon market.”
Carbonaires expects that the integrity of the Puro.earth-verified project, combined with potential returns, will attract additional institutional investors, including pension funds and family offices. The transaction is a key example of how early-stage financing and diverse capital blends can bring scalable carbon removal solutions to market