CS Axa

By Dieter Holger

AXA SA's investment arm has bought a carbon-removal marketplace startup from BNP Paribas SA to tap demand by companies that aim to suck carbon dioxide from the air through plants to meet their climate-change goals.

The Paris-based insurance company's money manager said Wednesday that it bought ClimateSeed as part of its strategy to invest in companies that provide solutions to climate change.

Financial details of the transaction weren't disclosed.

Launched in 2018, ClimateSeed offers businesses carbon offsets through projects that restore forests, build renewable energy capacity and reduce waste, among others.

Under the deal, BNP Paribas will continue to offer ClimateSeed's services to its clients.

ClimateSeed's portfolio includes 36 projects in 24 countries that account for four million carbon credits, AXA said. Each carbon credit represents one ton of CO2 removed.

Carbon removal has grown in popularity as thousands of companies pledge to reach net-zero greenhouse-gas emissions by 2050 or sooner. Earlier this year, stock-exchange operator Nasdaq Inc. bought carbon-removal marketplace Puro.earth.

"As corporates and governments globally embark on net-zero transition plans, the market for carbon credits is expected to significantly expand," AXA Investment Manager Executive Chairman Marco Morelli said.

"This decade is crucial to restore the planet and reverse climate change," ClimateSeed's Chief Executive Sebastien Nunes said.

Write to Dieter Holger at dieter.holger@wsj.com; @dieterholger

(END) Dow Jones Newswires

July 07, 2021 07:28 ET (11:28 GMT)

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