Financing Carbon Projects Before Credits Are Issued
Carbon projects face a fundamental challenge. Significant capital must be deployed to design, register, and implement the project before a single credit is verified or issued. Developers often need millions for feasibility studies, validation, monitoring, and operations long before revenues arrive. Financely works with sponsors to arrange structured financing solutions that bridge this gap and keep projects moving.
“The pre-issuance financing package gave us the certainty to continue restoration activities and unlock a forward sale at better pricing once credits were verified.”
★★★★★
— CEO, Reforestation Project Developer
Service Snapshot
| Facility range
|
$10 million – $150 million |
| Retainer
|
$45,000 – $100,000 (non-refundable) |
| Success fee
|
2.0–2.5% of funded amount |
| Timeline
|
60–120 days from intake and data room readiness |
How Pre-Issuance Financing Works
We match project developers with institutional investors, private credit funds, and corporates that finance against the future stream of credits. Each structure balances developer liquidity needs with investor security.
- Forward Purchase Agreements
– Buyers commit to purchase future credits at a discount. Funds are advanced upfront against expected issuance volume.
- Streaming and Royalty Models
– Investor provides capital today in exchange for a share of credits over the project life.
- Convertible Project Debt
– Loan facilities tied to milestones, repayable in cash or carbon credits upon issuance.
- Equity + Credit Hybrid
– Structured investments where early equity unlocks debt commitments once verification milestones are passed.
Risks and Controls
Risks
- Verification delays or underperformance in carbon sequestration
- Methodology or registry rule changes reducing issuance
- Offtake counterparties failing to honor purchase commitments
Controls
- Independent validation and monitoring reports
- Collateral structures and escrow accounts
- Step-in rights for investors if project milestones not met
Our Process
1) Intake
Review PDD draft, registry pathway, and expected credit volumes. KYC and NDA executed.
2) Structuring
Model forward issuance volumes, price scenarios, and cash flow coverage. Define security package.
3) Placement
Distribute to pre-qualified private credit funds, insurers, and corporate buyers with offtake appetite.
4) Closing
Negotiate final terms. Execute forward purchase or loan facility. Funds advanced.
Secure Pre-Issuance Carbon Finance
Share your PDD, registry pathway, and forecasted issuance volumes. We will structure a facility with forward buyers and credit investors to bridge until credits are issued.
Request a Term Sheet
Financely is a placement and advisory firm. We are not a carbon registry or broker. Financing is arranged with private credit funds, insurers, and corporates under strict underwriting and KYC. All facilities are subject to due diligence, AML checks, and confirmation of registry eligibility. This page is informational and not an offer or solicitation.