Goldman Sachs buys its way into offset market

Goldman Sachs has become the latest investment bank to buy its way into the carbon offset market, shelling out an undisclosed sum for an equity stake in US offsetting specialist Blue Source.

The acquisition forms part of a wider alliance that will see Goldman Sachs sell carbon credits generated from Blue Source's portfolio of emission reduction projects, including its investments in methane capture, energy efficiency, carbon capture and sequestration from fertiliser and natural gas production, and industrial gas destruction.

Bill Townsend, chief executive of Blue Source, hailed the deal as "an important step in the development of the North American carbon market", arguing that it provided the company with "an exceptional opportunity to reach a broad range of offset buyers through a highly experienced and well-trusted institution ".

He added that the deal also gave Goldman Sachs access to a wide range of independently verified carbon credits as "the US carbon market evolves from voluntary to compliance".

The deal is the latest in a line of moves from investment banks keen to bolster their presence in the fast-expanding carbon markets.

Earlier this year, JPMorgan brokered a similar deal that saw it acquire UK-based offsetting specialist Climate Care, while last week Credit Suisse announced it is set to offer $200m (£129)-worth of UN-backed carbon credits in a deal the bank's head of carbon trading described as "the largest structured carbon transaction ever done from a volume perspective".