Market Infrastructure to Facilitate Decarbonization

Goldman Sachs helped finance through a strategic investment alongside other investors

Xpansiv is a high-growth, vertically integrated market platform connecting buyers and sellers of environmental commodities such as voluntary carbon credits, renewable energy credits and low-carbon fuel certificates. Xpansiv’s growing ecosystem supports companies seeking to meet sustainability goals with various business lines that cover the environmental commodity lifecycle from inception at registries to trading, market data and ongoing portfolio management.

To support Xpansiv’s acquisition and growth strategy, Goldman Sachs helped finance the business through a strategic investment alongside other financial institutions. As part of the investment, Goldman Sachs plans to participate in Xpansiv’s Advisory Council.

This transaction is an important milestone in the development of key market infrastructure for environmental commodities.

The voluntary carbon credit market alone, which in 2022 was worth approximately $2 billion, has vast growth potential and could reach approximately $50 billion annually by 2030.¹ However, most environmental commodity markets are still in their infancy in terms of transparency and efficiency. Thoughtful market infrastructure adapted to specific product characteristics can help these markets scale up significantly.

 

¹ Bloomberg NEF: “Carbon Offset Market Could Reach $1 Trillion With Right Rules,” January 2023. https://about.bnef.com/blog/carbon-offset-market-could-reach-1-trillion-with-right-rules/