Impact Investing - Green Funds & Carbon Finance

Carbon finance has evolved as a result of the Kyoto Protocol, whereby the financial implications of living in a carbon-constrained world are explored. It involves the trading of greenhouse gas (GHG) emission rights between nations.
At the same time, green funds invest only in those companies viewed upon as socially aware in their business actions or engage in environmental responsibility directly.

Despite uncertainties on the regulatory front, we observe:

An increased appetite for forestry/timber funds (carbon related or not);
A launch of investment vehicles active in the voluntary carbon market.

A major competitive advantage of Luxembourg, as a country of domicile, is the ability for Carbon Funds to distribute carbon credits “in kind”, directly in the form of remuneration to investors.

In the last decade the carbon finance market has grown significantly in terms of capital size and also number of carbon vehicles.

Our experiences

We assisted Green Fund (e.g. Forestry funds, clean-tech, renewable energy and carbon) promoters in setting up the fund and its management company from a tax (e.g. VAT, corporate & personal), regulatory (e.g. most appropriate vehicle and CSSF filing) and accounting (e.g. LuxGAAP and IFRS) standpoint.
We supported several fund promoters in the preparation of marketing materials, business plan review and modelling, and fund raising.
Audit, reporting and assurance on non-financial information and valuation & pricing solutions.
By using our global network, we were able to bring together our expertise in a local project review (e.g. valuation and AML/KYC), regulatory filings, financial & technical due-diligence on project developers.

Evolution of carbon vehicles