About Us
Green Star Royalties Ltd. is a joint venture between Star Royalties Ltd. (TSXV: STRR, OTCQX: STRFF), Agnico Eagle Mines Limited (TSX, NYSE: AEM) and Cenovus Energy Inc. (NYSE, TSX: CVE) that funds premium, North American, nature-based climate solutions through carbon credit royalties and streams. We invest in cash flowing and near-cash flowing opportunities in both the voluntary and compliance carbon markets. We innovated the world’s first carbon credit royalties in forestry and regenerative agriculture. Our goal is to provide shareholders with exposure to rising carbon credit prices and we aim to create wealth by structuring creative investments that prioritize stakeholder alignment, strong corporate governance, and environmental stewardship to ensure a sustainable future.
Our Company is supported by strategic investments by two senior Canadian natural resources and ESG leaders – Agnico Eagle Mines (March 2022) and Cenovus Energy (December 2023). The Company is currently owned 46% by Star Royalties, 26% by Agnico Eagle Mines, 26% by Cenovus Energy, and 2% by management. The strategic investments by Agnico Eagle Mines and Cenovus Energy have provided us with two cornerstone shareholders, validation of our business model and investment pipeline, expanded Board and Technical Committee expertise, significant recognition of value, and a pathway to continue Green Star Royalties’ rapid growth.
Highlights and Investment Rationale
- Growing cash flow in Tier 1 jurisdictions: With the acquisiton of NativState's portfolio of U.S. forest carbon-credit royalties, Green Star Royalties is currently generating carbon credits, ramping up to over 600,000 carbon credits per year over the next 20 years. Our focus is purely on North American projects, with a goal of minimizing geopolitical risk and favouring established, credible market mechanisms.
- Exposure to carbon credit prices: Our strategy is to provide shareholders with exposure to rising carbon credit prices and to generate superior returns through the origination of carbon credit royalties and streams.
- Originating carbon offsets: We focus on funding new carbon offset projects in biosequestration (regenerative agriculture & improved forest management), renewable energies (solar & wind), as well as other green technology investments.
- Capturing green value: The combination of rapid growth in global ESG fund assets (Bloomberg forecasts ~US$53 trillion in assets under management by 2025) and limited ESG investment opportunities to allocate these funds to has the potential to create strong valuation premiums for ESG-focused companies, such as Green Star Royalties.
- Best-in-class partnerships: Green Star Royalties enjoys a strong working partnership with Anew Climate (North America’s leading carbon offset developer and marketer), NativState (a growing U.S. based carbon developer), as well as expanding relationships with numerous Canadian Indigenous communities and First Nations. In early 2022, Green Star Royalties announced a strategic investment by Agnico Eagle Mines, a senior Canadian gold mining company and a globally-recognized leader in ESG practices, followed by an equal strategic investment by Cenovus Energy, a senior Canadian-based global energy company, in December 2023.
- First-mover and strong pipeline: Green Star Royalties pioneered both the first forest carbon credit royalty investment as well as the first regenerative agriculture carbon credit royalty investment, and is executing on a pipeline of cash flowing and near-cash flowing carbon credit opportunities in both the voluntary and compliance carbon markets.
- Respected team: Green Star Royalties leverages the experience of Star Royalties’ management team, as well as its internal industry-leading carbon expertise. Its Board and Technical Committees will review new investment opportunities and will have equal representation from Star Royalties, Agnico Eagle Mines and Cenovus Energy.
- Strong governance and superior alignment: Green Star Royalties is managed with top-quartile corporate governance principles under a diverse board, with two appointees each from Star Royalties, Agnico Eagle Mines and Cenovus Energy. Our core operating philosophy is to structure innovative transactions that are well aligned with the interests of all stakeholders.
Philosophy
Green Star Royalties aims to provide shareholders with exposure to an anticipated dramatic rise in carbon credit prices required to reach global greenhouse gas emission reduction targets by 2030, as outlined in the Paris Agreement. By pioneering innovative royalty structures based on our management team’s decades of experience in the mining royalty sector, Green Star Royalties is well positioned to fund new carbon offset projects into existence. Our philosophy is to enable a carbon neutral economy, while simultaneously realizing good returns with intelligent, mutually beneficial, ESG-centred transactions.
Carbon Credits
The Paris Agreement reaffirms the goal to limit global temperature increase to below 2°C above pre-industrial levels, with a secondary aggressive target of limiting that increase to 1.5°C. Many governments and thousands of corporations having since committed to significantly reducing greenhouse gas emissions by 2030 and being carbon neutral by 2050.
Carbon offsets are generated from any activity that either prevents or reduces carbon emissions (such as renewable energies or methane capture technology) or improves carbon sequestration (such as regenerative agriculture, or reforestation and conservation of forested lands, or direct carbon capture technology).
Carbon credits are effectively a measurable net benefit from an activity versus the status quo. Their units are measured in metric tonnes of CO2e, meaning one carbon credit is equal to one metric tonne of CO2e emission reduction.
Experienced Management of Capital Allocators and Carbon Experts
Our team’s combined experience comprises more than 100 years of senior roles in the mining and carbon sectors. Our experience and time spent in various aspects of these industries have allowed us to cultivate strong industry relationships over decades of engagement, resulting in a pipeline of opportunities and an extensive global asset knowledge base.
Why Partner with Us?
We are not simply investors in environmental projects. We pride ourselves at being collaborative and transparent partners to North American, nature-based project owners, with the ultimate goal of enabling a carbon neutral economy. Our management team has decades of combined industry experience and a deep understanding of structuring creative transactions that work for all counterparties. That makes us partners of choice. Our carbon credit royalty business model, North American focus, and a strong expertise in governance and environmental stewardship makes us attractive to both generalist and ESG-focused investors.