In brief: CPPIB’s carbon credit play

The Canadian pension fund has invested $20m in partnership to generate carbon credits.

The Canada Pension Plan Investment Board is to invest $20 million in forest protection schemes in South America to generate certified carbon credits that can be traded on voluntary carbon markets, reports affiliate title Responsible Investor (registration or subscription required). The project will be developed jointly with US-based non-profit Conservation International, which has committed $0.5 million of its own funds, in what is billed as a first-of-its-kind initiative by a global asset owner.

CPPIB confirmed to Responsible Investor that the partnership is solely a financial investment for the fund and will not be used to offset its own portfolio emissions. The $417 billion scheme is among five Canadian pension funds to have boosted their exposure to oil sands producers in 2021, with newly-appointed CPPIB CEO John Graham declaring that the fund will not divest oil and gas assets during his tenure.