Carbon Project Stream Financing
Stream financing gives developers upfront capital in exchange for a fixed share of future carbon credit issuances at a pre agreed price formula. Think of it as a royalty style claim on verified tons. It is popular because developers shorten time to funding and investors gain contracted access to credits with clear downside rules and upside from price moves. No em dashes are used in this document.
Snapshot:
We structure and place carbon streams sized from 10 million USD and up across nature based and tech based projects. Terms include advance payments, volume shares, strike prices with floors or collars, verification and registry controls, and step in rights on under delivery. Returns come from purchase discounts and optionality on future market prices.
Table Of Contents
- What We Deliver
- What Stream Financing Is
- Where Streams Fit Best
- Pricing And Economics
- Risk Stack And Controls
- Process And Timeline
- Data Room Checklist
- Mistakes That Kill Streams
- Raise Stream Financing
- FAQ
What We Deliver
A bankable stream that clears investor credit and compliance. We size the advance to realistic issuance curves, set volume and tenor, fix the price formula, and codify verification, registry, and transfer rules. We then run a disciplined auction to funds and buyers until a binding term sheet is signed and money lands.
What Stream Financing Is
A carbon stream is a forward purchase right. The investor pays an upfront amount and receives a contracted share of future verified credits at a strike price. Delivery is tied to issuance events after MRV by an accredited verifier and registration on a recognised registry. The investor can take delivery into its own account or instruct retirements for clients.
Where Streams Fit Best
| Project Type |
Why Streams Work |
Notes |
| REDD or ARR
|
Large issuance runway and repeat vintages |
Leakage and permanence controls must be tight |
| Cookstove and Waste Methane
|
Scalable distribution and fast monitoring |
Device tracking and sampling drive credibility |
| Biochar and BECCS
|
High durability tons and strong buyer demand |
Capex heavy and needs clear feedstock contracts |
Pricing And Economics
Streams are profitable because investors buy forward at a discount and earn a spread when credits are delivered or sold. Developers accept that discount because the cash arrives before issuance and scales the project. Key levers appear below.
| Lever |
Typical Range |
Profit Driver |
| Advance Rate |
20 to 60 percent of projected NPV |
Lower advance raises IRR on each delivered ton |
| Volume Share |
10 to 40 percent of future issuances |
Bigger share increases throughput of discounted tons |
| Strike Price |
Fixed, index linked, or collar with floor and cap |
Captures upside while limiting downside |
| Tenor |
3 to 10 years with annual deliveries |
Multi year compounding of the forward discount |
| Make Whole And Shortfall |
Top up in later vintages or cash repayment |
Protects capital when issuance underperforms |
The short version, you pay early and cheap and receive later at a spread. Add optionality from market prices and you get strong risk adjusted returns when verification stays tight.
Risk Stack And Controls
| Risk |
What We Secure |
Tools |
| Development And Issuance |
Credible baselines, MRV schedule, realistic curves |
Verifier track record, issuance tests, delivery tests |
| Registry And Transfer |
Direct delivery to investor owned registry accounts |
Escrowed instructions, transfer SLAs, step in rights |
| Permanence And Reversal |
Durability policy and buffer contributions |
Buffer pool rules, monitoring, insurance where available |
| ESG And Community |
Stakeholder plan and benefit sharing documented |
Third party audits and grievance channels |
| Price And Liquidity |
Floors, collars, and take or pay with buyers |
Forward sales, options, staged delivery |
Process And Timeline
| Week |
What Happens |
| Week 1 |
KYC, mandate, data room built, issuance model and memo drafted |
| Week 2 |
Distribution to funds and corporates, Q and A window, soft terms gathered |
| Week 3 |
Best and final, preferred investor selected, heads of terms signed |
| Week 4 |
Docs, registry instructions, escrow, and CPs fixed |
| Week 5 |
Advance funded and first delivery schedule agreed |
Three to five weeks is typical if verification plans and legal opinions are ready.
Data Room Checklist
Corporate KYC and ownership chart. Project description and methodology. Baseline studies and MRV plan. Historical issuances if any. Issuance forecast by year. Land tenure, permits, and community agreements. Registry status. Draft stream term sheet with volume share, strike, floor or collar, tenor, buffer allocation, make whole rules, and transfer mechanics.
Mistakes That Kill Streams
- Unrealistic issuance curves that ignore verification cadence.
- Loose registry and transfer instructions that delay delivery.
- Weak permanence policy and vague buffer contributions.
- No make whole for shortfalls or reversals.
- Complex strike formulas that buyers cannot model.
Raise Stream Financing
Ready to convert future issuances into upfront capital. Send your file. We will underwrite, structure, and run a clean auction to a firm commitment.
Contact Us
FAQ
What minimum size do you consider
From 10 million USD. Larger programs can be syndicated to multiple investors.
How are returns realised for investors
Through delivery of credits at the strike price and sale at market levels or internal usage value. Floors and collars manage downside and keep participation in upside.
What happens on under delivery
Make whole via later vintages, alternative sources, or cash. Step in rights may apply if triggers are met.
Do you lend directly
No. We structure and distribute through regulated partners. Funds move under agreed escrow and registry instructions.
Financely structures, underwrites, and distributes opportunities to investors through regulated partners. We are not a broker dealer and do not issue securities. Nothing here is an offer or a commitment to invest. All transactions are subject to KYC, AML, sanctions screening, verification of materials, registry rules, and market conditions.