JPMorgan buys Climate Care, reflecting bullishness in the voluntary offset market
A slightly lower profile JP Morgan acquisition was announced yesterday. The investment bank will buy Climate Care over the next few months in the first outright acquisition of an offset project developer. Climate Care will retain its brand and its main business will continue to be financing and packaging offset projects in the developing world.
Climate Care sells offsets to customers who are not regulated under the EU ETS (i.e. they don’t buy the offsets for any kind of compliance – they buy them for ethical or marketing purposes). Some of these offsets have passed the UN’s Clean Development Mechanism and are called ‘Certified Emission Reductions’, while others use voluntary standards.
The deal reflects continued bullishness in the voluntary offset market at a time when marketing and CSR budgets are under pressure and consumers are cutting back on any unnecessary spending.