Carbon Credits Mergers & Acquisitions

BTG Pactual Acquires Minority Stake in Systemica

BTG Pactual Acquires Minority Stake in Systemica

Latin America’s largest investment bank, BTG Pactual (BPAC11), has inked a deal to acquire a minority stake in Systemica, a company specializing in structuring, developing, and implementing projects aimed at reducing greenhouse gas (GHG) emissions and trading the ensuing environmental assets. The move is part of a broader strategy to support the transition to a low-carbon economy and advance the carbon credit market, bolstering carbon projects’ integrity, quality, and international reputation in Brazil and Latin America.

The demand for a low-carbon economy has witnessed a significant upsurge globally, with many financial institutions and large corporations pledging to cut emissions and strategizing to decarbonize their operations. According to Trove Research, the number of companies committed to emission reduction under Science Based Targets (SBTi)—a science-backed initiative combatting climate change—has surged over tenfold from 2020 to early 2023. This increase has resulted in escalating volumes of retired carbon credits.

Financially, this burgeoning demand has triggered a nearly fourfold growth in the global voluntary carbon market from 2020 to 2021, hitting close to $2 billion in traded credits, as reported by Ecosystem Marketplace. The market continued to flourish last year and is expected to reach a global volume of $10 billion to $40 billion by 2030, according to Boston Consulting Group (BCG). Again, Brazil stands out as a promising market, offering substantial assets to the global platform and attracting considerable international capital.

Roberto Sallouti, CEO of BTG Pactual, believes that the partnership between BTG and Systemica will bring together two industry leaders to bolster the nascent carbon credit market in Latin America and foster an environmental assets platform. “The investment aligns seamlessly with the bank’s ESG & Impact Investments agenda, which continues to champion the adoption of practices and development of products contributing to a low-carbon economy,” Sallouti commented.

Munir Soares, CEO of Systemica, sees the alliance with BTG as a fruitful collaboration, primarily because BTG is a highly credible institution that will expand Systemica’s operational capacity and business impact. “Our partnership with BTG Pactual will enhance the quality of carbon credits sold, contribute to the development of our environmental assets, and bolster our solutions ecosystem, as well as the broader market, on a grander scale,” Soares added.

While Systemica primarily focuses on projects for the voluntary carbon market (such as REDD+, Reforestation, and other Nature-Based Solutions), the company also sees immense potential in other environmental services with growing demand, like biodiversity conservation, carbon credits linked to sustainable agriculture, and the potential plastic market. Leveraging its extensive experience developing public policies and projects for Public-Private Partnerships, Finance, and Investments, Systemica boasts a multidisciplinary team capable of implementing bespoke methodologies for projects across the public sector, NGOs, and private companies.


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