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Carbon Markets Platform Rubicon, Raises $1 Billion


Rubicon Carbon, a platform for carbon markets-focused products and solutions, announced its formal debut with the goal of "delivering greater scale, confidence, and innovation across all aspects of the carbon market."


With a $300 million capital commitment from its climate-focused investment strategy TPG Climate Rise and its impact investing strategy The Rise Fund, global alternative asset management firm TPG is supporting the launch of the new platform.


The company stated that it is seeking total financial commitments of $1 billion, with Bank of America, JetBlue Ventures, and NGP ETP anticipated to participate in its initial equity round.


CEO Tom Montag and Chairwoman Anne Finucane, formerly the Chief Operating Officer and Vice Chair of Bank of America, respectively, currently lead Rubicon.


Montag said:


"To achieve net zero emissions and stay as close as possible to a 1.5-degree trajectory, corporations must first reduce emissions as much as possible inside their value chains. We must scale parallel high-quality carbon credits to balance any remaining emissions that cannot be reduced immediately."


According to Rubicon, the launch occurs when the demand for carbon credits is rising rapidly and market vulnerabilities and asymmetries are becoming apparent.


Jim Coulter, Managing Partner of TPG Rise Climate and Founding Partner

TPG stated:


"The growing carbon market will need new tools and funding options to reduce friction, open up access, and improve quality. Rubicon Carbon was not made as an alternative to reducing carbon emissions quickly, but rather as a complete solution for businesses that have chosen to use high-quality carbon credits as part of their overall plan to reduce carbon emissions.


Demand for carbon offset projects, which counteract the emission of greenhouse gases, and related credits is anticipated to increase significantly over the next several years, as an increasing number of businesses pursue net-zero ambitions and turn to carbon offsets as a bridge to their own absolute emissions reduction efforts, or to balance emissions that are difficult to avoid.


However, the market for carbon credits has obstacles such as a lack of liquidity and insufficient or inconsistent data to evaluate the efficacy of the initiatives.


Rubicon's platform provides technology-based services including proprietary curation and portfolio construction, increased monitoring and analytics in an effort to address these concerns at scale. The company's first product, the Rubicon Carbon Tonne (RCT), offers enterprise clients access to proprietary sets of both nature-based and non-nature-based carbon credits, backed by an owned inventory – 20 million tonnes of CO2e at launch – of high-quality, verified, and widely diversified carbon credits.


Finucane said:


"The most recent COP27 debates highlight the vital role that established markets play in channeling finance towards a massive supply of high-quality carbon reduction or removal initiatives, especially in poorer nations. Rubicon is intended to be the market-based solution that permits both the supply and demand sides of the global carbon market to expand in a responsible manner."


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