Merger Creates North America’s Largest Carbon Credit Originator and Marketer

Bluesource, a provider of carbon credits, and Element Markets, a distributor of environmental commodities, have joined forces.

The new entity “TPG Rise Climate” will be managed by the alternative asset manager – TPG (NASDAQ: TPG).

TPG Rise Climate will be the largest creator and marketer of carbon credits and environmental credits in North America.

This transaction highlights the potential for consolidation in the market for ESG (environmental, social, and corporate governance) advisory services.

Bluesource advises businesses on how to minimize their carbon footprint by using carbon offsets and initiatives ranging from reforestation to wastewater treatment.

Bluesource previously announced a $500 million partnership with private equity firm Oak Hill Advisors to purchase timber forests for use in offset schemes.

Element Markets assists corporations in producing renewable natural gas while simultaneously providing carbon and other emission credits. Element Markets was acquired by TPG in January 2021.

There were no financial details disclosed except that NGP Energy Capital Management, another private equity firm, will also have a stake in TPG Rise Climate.

TPG Rise Climate business unit partner Marc Mezvinsky believes that “combining Element Markets and Bluesource will allow us to channel much-needed capital and solutions to deliver a robust supply of third-party-verified credits via nature-based sequestration, avoided nature loss, methane destruction, low-carbon fuels, and new and innovative pathways,”

Element Chief Executive Angela Schwarz, will lead the combined company and Bluesource co-founder Bill Townsend will serve as chief strategy officer.

TPG Rise Climate will employ approximately 150 people.

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