Latest news with #ChestnutCarbon
Yahoo
22-07-2025
- Business
- Yahoo
JPMorgan Just Sparked a $210M Green Finance Revolution--Here's What It Means for Carbon Markets
JPMorgan (NYSE:JPM) has just structured something that could change how carbon markets get fundedstarting with a $210 million loan for Chestnut Carbon. In a deal that applies traditional project finance to a carbon-credit developer for the first time in the U.S., Chestnut will use the funds to deliver long-term nature-based carbon removal credits to Microsoft under a 25-year contract. The forestry projects in Arkansas and Texas have already seen over 17 million trees planted since 2022. JPMorgan, joined by a group of smaller lenders, is betting that this modelnon-recourse and cash-flow-backedcould make carbon projects more bankable and draw in long-missing institutional investors. Warning! GuruFocus has detected 8 Warning Sign with JPM. The carbon credit market has long been stuck in a chicken-and-egg trap: investors want scale, but developers need capital to get there. Chestnut's CFO Greg Adams believes this debt-based structure may finally break that cycle. Instead of relying on equity or philanthropyas most projects still dothis structure could reduce the cost of capital and make room for infrastructure funds and mainstream financiers. JPMorgan's Vijnan Batchu echoed that view, saying giving developers runway at a better financing cost is key to delivering meaningful impact. The hope is that this model doesn't stay a one-off. While it's still early, the move may hint at a broader shift. Nancy Pfund of DBL Partners, an investor in Chestnut, noted that while this one loan doesn't solve the market's broader capital gap, it could be a turning point. If more deals like this follow, the voluntary carbon marketoften dismissed as too small to mattermight start to look like a serious asset class. And if Chestnut's partnership with Microsoft proves scalable, carbon removal could finally gain the financial muscle it needs to grow. This article first appeared on GuruFocus.
Bloomberg
22-07-2025
- Business
- Bloomberg
JPMorgan Closes $210 Million Carbon Loan to Draw New Investors
JPMorgan Chase & Co. has helped structure a first-of-its-kind lending facility for a developer of carbon credits that it hopes will lower the cost of capital and attract institutional investors to a market that's struggled to grow amid a series of missteps and corporate apathy on climate action. The US bank, together with a syndicate of smaller lenders, closed a $210 million loan deal that will enable carbon developer Chestnut Carbon to meet its obligations under a 25-year agreement to generate credits from forestry projects in Arkansas and Texas, and deliver them to Microsoft Corp. The loan represents the first time traditional project-finance techniques have been applied to a US carbon-credit project and is an important step to help draw investors to the market, Chestnut said in a statement on Tuesday. The voluntary market for carbon credits, though touted by advocates as an important weapon in the fight against climate change and a critical vehicle for transmitting money from wealthy countries in the northern hemisphere to the global south, remains so small as to be a rounding error in the context of global capital markets. Still, a handful of deep-pocketed corporations are working to help it grow: Microsoft has signed scores of long-term carbon removal contracts, such as the one with Chestnut, while JPMorgan has said it wants to be the ' carbon bank of choice.'
Indian Express
15-05-2025
- Automotive
- Indian Express
How Mercedes' latest material innovation pushes F1 sustainability forward
Written by Somya Panwar For 75 years, Formula One has thrived on innovation — much of it engineered for performance, speed, and spectacle. But the Mercedes-AMG PETRONAS F1 Team is adding another layer to that legacy: sustainability. In a landmark move that aligns with F1's shifting environmental priorities, Mercedes announced that by 2025, their W16 challenger will feature use of sustainable carbon fibre composites — marking the first time in the sport's history that this scale of sustainable material will be integrated into a Formula One car. The initiative, driven in part by Mercedes' commitment to achieving net-zero carbon by 2040, isn't just about optics. Roughly 75% of the team's race car will soon be composed of sustainable carbon fibre. 'When you combine performance and innovation, you create progress,' Toto Wolff, CEO of Mercedes-AMG PETRONAS F1 Team and Head of Mercedes-Benz Motorsport, said in a statement. 'I am proud to lead a team of problem solvers who are committed to driving sustainable changes.' The material itself is engineered from two essential components — fibres and a resin system. Typically, the composite is made up of 60% fibres and 40% resin, cured into a lightweight but durable material capable of withstanding the stress of elite motorsport competition. Mercedes' longstanding partner, Petronas, is onboard as well, aligning its own green fuel development with the team's sustainability push. The latest project sees Mercedes collaborate with Chestnut Carbon, an organization focused on ecological restoration and carbon removal. Two separate programs are underway: one targeting the carbon fibre material and another improving the sustainability of the resin system. 'This commitment is reflected in our ownership of the land and our 100-year project design,' said Ben Dell, CEO of Chestnut Carbon. 'We have developed a comprehensive Community Engagement plan to ensure transparent communication and positive relationships with the local stakeholders, reinforcing our dedication to both environmental stewardship and community support.' As part of this effort, Mercedes has committed to purchasing 5,500 tonnes of carbon removal credits between 2027 and 2030. The project is supported by a network of four to eight suppliers for each component of the composite material, and each part must still pass the FIA's rigorous performance testing before hitting the grid. 'We are proud to be at the forefront of sustainable innovation within our sport,' said Alice Ashpitel, Head of Sustainability at Mercedes. 'Leadership must be driven by innovation, and our team's efforts in this space are the latest demonstration of our ambition to become one of the world's most sustainable global sports teams.' Mercedes is exploring applications of these sustainable materials in industries like aviation and aerospace—an evolution of F1's role as a high-speed laboratory for change. As per sustainability magazine, Ben Dell, CEO of Chestnut Carbon commented: 'This commitment is reflected in our ownership of the land and our 100-year project design. Additionally, we have developed a comprehensive Community Engagement plan to ensure transparent communication and positive relationships with the local stakeholders, reinforcing our dedication to both environmental stewardship and community support.' (The writer in an intern with the Indian Express)
Yahoo
24-03-2025
- Business
- Yahoo
Developer scores $160 million to revitalize degraded farmland: 'Another positive step'
Nature-based carbon removal developer Chestnut Carbon scored two big wins to push it closer to its carbon credit capacity goal. With more companies committed to reducing their pollution, demand has surged for high-quality carbon credits. Carbon removal companies such as Chestnut are stepping up by selling credits to companies seeking to cancel out the pollution they generate through high-emission activities such as data center operations. Chestnut, in particular, acquires old and degraded farmland and plants trees to transform those areas into forests. From 35,000 acres in the Southeastern United States, Chestnut hopes to have more than 100,000 acres of restored forest by 2030, according to TechCrunch. Its main goal is to increase its carbon credit capacity to around 110 million tons — a huge step toward reducing carbon pollution and achieving cleaner air. In January, Microsoft signed a 25-year deal with Chestnut, essentially expanding an earlier agreement the two parties inked in 2023. "This agreement with Chestnut Carbon is another positive step towards Microsoft's goal to become carbon negative by 2030," Brian Marrs, senior director of energy and carbon removal at Microsoft, said. The deal grants Microsoft seven million carbon credits, according to TechCrunch. Chestnut has already allocated funds to purchase and rehabilitate 60,000 acres of land in Arkansas, Texas, and Louisiana. A couple of weeks after the Microsoft deal, Chestnut announced it raised $160 million in Series B funding for expanding its mission of restoring degraded farmland into thriving forests. Led by the Canada Pension Plan Investment Board, which committed $30 million, the investment round also included backing from Cloverlay, DBL Partners, and others. Chestnut's goal to reach roughly 110 million tons in carbon credits represents a meaningful contribution to a more resilient future. Its efforts also benefit consumers by helping create cleaner air and contributing to healthier communities. With increasing investments in carbon removal strategies, the transition to a greener Earth is becoming more feasible. As corporations such as Chestnut and Microsoft take action and lead the way to a more eco-friendly future, consumers can also do their part by supporting eco-friendly initiatives. Does seeing a product labeled with its carbon footprint make you more likely to buy it? Definitely Only if the carbon footprint is small Only if I understand the label Not at all Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Associated Press
26-02-2025
- Business
- Associated Press
Chestnut Carbon Announces First Issuance of Credits from Forest Conservation Membership Program
Chestnut Carbon has issued and sold more than 64,000 tons of Improved Forest Management (IFM) carbon removal credits totaling $2.2 million to global financial services companies. NEW YORK, Feb. 26, 2025 /PRNewswire/ -- Chestnut Carbon ('Chestnut'), a leading developer of nature-based carbon removal solutions, announced today that they have completed the first issuance and sale of Improved Forest Management (IFM) credits sourced from their conservation membership program branded as Forest Carbon Works. The issuance of more than 64,000 credits, or tons of carbon removal, were sold to multiple corporate buyers, including JPMorganChase. These transactions totaled $2.2 million. Chestnut's U.S.-based IFM membership program, Forest Carbon Works, provides an opportunity for private forest owners to access income-generating carbon markets while preserving the integrity and legacy of their land. The program includes landowners in 36 states with more than 150,000 acres enrolled as of February 2025. These carbon removal credits are certified through Verra on the voluntary carbon market (VCM) and undergo rigorous third-party audits. Chestnut's conservative methodology underlies carbon removal credits which are highly additional and more durable than most IFM projects in the market today. 'We're extremely proud to bring this issuance of IFM carbon removal credits to market,' said Ben Dell, CEO of Chestnut Carbon and Managing Partner of Kimmeridge. 'The high quality and integrity of our product offering is reflected in the premium pricing we're receiving for our credits.' Chestnut's carbon removal represents the highest quality IFM product available: 100% Carbon Removal: Unlike most IFM credits, which represent a blend of avoidance and removal measurement, Chestnut only sells credits measuring carbon removal. These represent emissions removed from the atmosphere and sequestered in new growth, aligning with what many sustainability-focused buyers are looking for today; Highly Additional: Chestnut's conservation membership program protects at-risk forests across the U.S. and provides landowners with an alternative revenue stream for conservation instead of harvesting their timber; and Longer Duration: Long-term conservation easements attached to member land deeds ensure carbon is stored for 60+ years. This extended timeframe surpasses most existing IFM programs available in the market (typically 40 years), providing buyers with a reliable and lasting impact on carbon removal. About Chestnut Carbon Chestnut Carbon ('Chestnut') is a leading developer of nature-based carbon removal credits. Founded in 2022 with the support of energy-focused alternative asset manager Kimmeridge, Chestnut generates U.S.-based, high-quality forest carbon offsets that are additional and verifiable to accelerate the path to net zero across a range of industries. Chestnut uses a proprietary, technology-enabled approach to developing forest carbon offset projects on family-owned forestland and marginal crop and pastureland. Chestnut's expertise is driven by an experienced team, whose diverse backgrounds include forestry, carbon regulation, environment, finance and land management. For additional information on Chestnut, its strategies and environmental stewardship, please visit
