Offset8 Capital aims to build in Abu Dhabi Global Market a carbon investment fund with a target size of at least US$250m, the first of its kind in the Middle East

Offset8 Capital Limited (“Offset8”) is an Abu Dhabi Global Market-based asset manager that aims to build a carbon investment fund with a target size of at least US$250m, the first of its kind in the Middle East (the “Fund”).

Offset8 envisions that the Fund will finance climate mitigation and adaptation projects, with focus on mangrove restoration, reforestation and biochar. Of particular relevance will be projects that aim to support local communities in Africa and Southeast Asia and to contribute to both environmental conservation and sustainable economic development. In assessing such projects, Offset8 intends to rely on the Integrity Council on the Voluntary Carbon Market’s Core Carbon Principles for high-quality carbon credits that create real, verifiable climate impact, based on the latest science and best practice.

The founders of Offset8 have opted to incorporate the asset management company, and to establish the Fund in the ADGM to take advantage of the ADGM’s novel framework regulating carbon credits as a type of financial instrument. Offset8 hopes that the Fund will support the ambitions of the ADGM to become a key jurisdiction in the emerging field of sustainable finance.

The Offset8 team is comprised of 12 mainly Abu Dhabi based professionals with expertise in the areas of carbon markets, commodity trading, investment and asset management in emerging markets that are relevant to both sourcing high-quality carbon credits generating projects and realising the carbon credits to be generated.

Offset8 has, to date, identified more than 50 projects in 29 countries that it expects will form the investment pipeline of the Fund. Offset8 held discussions with potential counterparties in Japan and other countries where the main carbon credit buyers are currently based. Offset8 envisions that such buyers will act as off-takers of the carbon credit that the Fund is expected to receive.

Subject to regulatory approval which will enable Offset8 to sponsor and advise the Fund, Offset8 plans to have the initial closing of the Fund in Q3 2023. Offset8 has appointed Clifford Chance as its legal advisor on the formation and operation of the Fund.

Co-founders, Jules Maitrepierre and Ivan Mozharov, believe "Offset8's upcoming carbon investment fund is not just an investment opportunity; it is a chance to build a lasting legacy. Through our projects, we envision a future defined by environmental conservation, economic empowerment, and united global action."