Clyde & Co advises on pioneering Investment and Carbon Credit Offtake Funding Arrangement between The Carbon Removers and Carbonaires in collaboration with UBS, to decarbonise the Scotch whisky supply chain.
UBS and The Carbon Removers have entered into an arrangement whereby UBS will provide two (2) tranches of vital investment funding for the procurement by The Carbon Removers of four (4) Nimmons900 Units (specialist carbon sequestration units). The units are to be installed in several whisky distilleries across Scotland in order to capture the biogenic CO₂ emitted during the whisky distillation process. The carbon capture project will run for a period of 18 years, during which time 599,280 tons of CO₂e is anticipated to be sequestered, with a total of nearly 580,000 Puro.earth-verified carbon dioxide removal credits (CDR credits) anticipated to be delivered. UBS will be entitled to receive a percentage share of the CDR credits in exchange for its investment.
The Clyde & Co team was led by Corporate & Commercial Partner, Nick Purnell, and assisted by Senior Associate, Georgia Losy, acted as legal advisers to The Carbon Removers, advising on the key commercial terms of the Investment and Carbon Credit Offtake Agreement.
Nick Purnell said of the transaction: “The innovative financing structure, facilitated by Carbonaires, is demonstrative of how investment in carbon removal technologies such as the Nimmons900 Units, can positively contribute to both the achievement of net zero emissions, as well as the provision of financial returns to investors by way of CDR credits. The collaboration between The Carbon Removers and Carbonaires / UBS reflects an increase in confidence in carbon removal investments and is a hugely positive step forward in reducing the impact of climate change on our environment. It was fantastic to be involved in this project, and to build on our wealth of experience in the carbon removal space.”
