CE2 Capital Partners LLC and Energy Capital Partners (ECP) announced the formation of CE2 Carbon Capital, LLC, a company dedicated to building a portfolio of carbon offsets and other assets focused on reducing greenhouse gas (GHG) emissions in North America.
The joint venture will be opened with an initial commitment of $125 million.
CE2 Carbon will actively participate in both existing and future state, regional, voluntary and federal GHG markets in the US. The new company will aggregate positions in carbon offsets, renewable energy credits (RECs), and other GHG products and assets. CE2 Carbon will provide long-term agreements to purchase carbon offsets and RECs and invest in carbon-reducing projects.
CE2 Capital and ECP expect that state and regional carbon markets will continue to develop across the US, and that an economy wide cap-and-trade system has the potential to become mandatory within the next several years. Driven by these policies and market fundamentals, CE2 Carbon believes the carbon trading market in the US will grow substantially.
"CE2 Carbon should be well-positioned to benefit as this market grows and more companies recognize the economic advantages of reducing their carbon footprint by purchasing the types of offsets CE2 Carbon will have aggregated," said Doug Kimmelman, Senior Partner of ECP.
"CE2 Carbon is committed to creating one of the highest quality portfolios of carbon emissions reductions in North America," said Greg Arnold, Managing Partner of CE2 Capital. "We are excited about the prospects of combining the environmental commodities expertise of CE2 Capital Partners with the energy infrastructure experience of Energy Capital," said Harold Buchanan, CEO of CE2 Carbon.
About CE2 Capital Partners LLC
Founded in 2005, CE2 Capital Partners LLC is a San Diego- based manager of environmental and energy commodities and assets in market-based programs including those designed to combat climate change, acid rain, smog, particulate pollution and to create more clean energy generation.
About Energy Capital Partners LLC
ECP is a private equity firm dedicated to investing in the power generation, midstream gas, renewable and electric transmission sectors of North America’s energy infrastructure. The firm’s management hasexperience leading successful energy companies and energy investments. ECP has offices in Short Hills, NJ and San Diego, CA.
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