London based Sindicatum Carbon Capital (SCC), in which Edgo is both shareholder and contractor, is to launch a $400 million fund by the year end to invest in greenhouse gas abatement projects in worldwide emerging markets, including the Middle East.
Increasing demand for environmental emission reduction credits, often called ‘carbon credit’, is expected to create a $1 trillion market during the next decade, according to SCC. The firm claims that the trading of carbon credits increased from $50 million in 2003 to $400 million in 2004 and increasing growth should see it reach $150,000 million by 2010. The aim is to reduce greenhouse gas emissions by allowing companies to sell unused carbon credits to other companies. The new fund, called the Sindicatum Carbon & Energy Fund, will target this new market. It will be launched in London and managed by an SCC subsidiary, Sindicatum Capital International. As part of its strategy SCC will focus on three main sectors: nitric acid, coal mine methane and landfill gas. The company is planning up to 25 projects worldwide. The Founders of SCC include Edgo, Citigroup Venture Capital International and Black River Asset Management, a subsidiary of the US company Cargill.