Blackstone has announced that funds managed by Blackstone Energy Partners have invested $400 million in carbon trading platform Xpansiv.

Xpansiv connects buyers and sellers of environmental commodities and provides market data for voluntary carbon offsets, renewable energy credits, and low-carbon fuels. Blackstone says the investment will enable Xpansiv to continue driving growth and continues Blackstone’s recent thematic investments in the energy-transition and climate-solutions spaces, which include Legence and Sphera.

David Foley, Global Head of Blackstone Energy Partners, said: “As a leading private equity investor in the dynamic energy transition market, we proactively seek out companies with entrepreneurial management teams that are well positioned to benefit from fundamental long-term trends. As more corporations make net-zero commitments, there is an increasing need to efficiently connect them with—and indirectly provide funding for—the most efficient, high-quality developers of CO2 reduction projects. Xpansiv has a first-mover advantage, and Blackstone’s investment will enable them to capitalize upon that lead, creating a uniquely positioned company with ownership of critical software, technology, and a scalable exchange for trading voluntary carbon offsets and related environmental products. We believe this market will experience exponential growth over the next decade.”