Blackstone Invests $400 Million in Environmental Commodity Exchange Xpansiv
Blackstone Inc. will invest $400 million in Xpansiv, a platform that lets investors trade assets tied to the energy transition such as carbon offsets and renewable-energy credits.
The upstart exchange is trying to provide the tools needed to standardize prices for carbon in the financial system. Analysts say that is a vital step to spur emissions reductions by large companies. Xpansiv formed a partnership with CME Group Inc. to last year launch futures contracts tied to voluntary carbon offsets.
Blackstone believes Xpansiv is in a sweet spot in the energy transition because it provides information that businesses and investors will need, said David Foley, global head of Blackstone Energy Partners. “The demand for it is just exploding,” he said.