Tokyo Gas Co., Ltd. has announced the investment in the Nature Based Carbon Fund, with a focus on creating high-quality, nature-based carbon credits that emphasise regional coexistence. The company plans to invest up to $25 million in the Fund.
The Fund, managed by Climate Asset Management (CAM), will offer reliable carbon credits to companies and investors pursuing net-zero goals. Tokyo Gas is the sole investor from Asia in this global initiative.
The carbon credits generated by this Fund are derived from efforts like afforestation and ecosystem restoration, which require large, continuous land areas. As such, the supply of these natural carbon credits is limited, particularly those from afforestation, which sequester carbon in vegetation and are expected to become increasingly scarce in the medium to long term.
By investing up to $25 million, Tokyo Gas aims to secure a substantial amount of these rare, high-quality natural carbon credits over a 12-year period, ending in 2037. In its “Compass 2030” Group Management Vision, Tokyo Gas has set a target of achieving net-zero CO2 emissions across all its business activities, including at customer sites. Moving forward, the company will continue to contribute to Japan’s 2050 carbon neutrality goal in collaboration with its customers.
Martin Berg, CEO of CAM said, “We are very pleased that Tokyo Gas will participate as an investor in the Fund. With Tokyo Gas’s commitment, the Fund’s investors will be international, including from the US, UK, Europe, Australia and Asia. We look forward to working with Tokyo Gas and supporting their climate change goals.”
Nobuhiro Sugasawa, Executive Managing Officer and General Manager of the Solutions Co-Creation Division, Customer & Business Solutions Company, Tokyo Gas said, “We are very pleased to join the carbon fund team managed by CAM, which combines excellent expertise and discerning eyes, as an investor. By utilizing the high-quality carbon credits created by the fund, we will further evolve our carbon offset menu and contribute to our customers’ prosperous future and sustainable business operations.”