Carbon Streaming agrees US$6 million deal to end Community Carbon Stream

Carbon Streaming Corporation said on October 1, 2026 that it has entered into an agreement with Community Carbon and UpEnergy Group, referred to together as the UPE Parties, for total consideration of US$6.0 million. The deal covers the termination of the Community Carbon Stream and the transfer of the company’s remaining portfolio of carbon credits.

The company said the US$6.0 million is made up of three parts: US$2.35 million from its own sale of certain CORSIA-tagged Tanzanian cookstove carbon credits to a third-party buyer; US$1.47 million from sales by the UPE Parties of certain CORSIA-tagged Tanzanian cookstove carbon credits, with those proceeds to be deposited into escrow and paid to the company; and US$2.18 million deposited by the UPE Parties into escrow and to be paid to the company.

Carbon Streaming said release of the escrowed funds remains subject to the conditions in the agreement, including confirmation by the escrow agent that it holds the full escrow amount. The company said it has already received US$2.35 million, with the remaining US$3.65 million to be paid from the escrow account.

The company expects the transaction to fully close and for it to have received the full US$6.0 million within ten business days, subject to the closing conditions. After the escrowed funds are released, Carbon Streaming said it will transfer its remaining inventory of carbon credits under the Community Carbon Stream, the stream will be terminated and the parties will grant mutual releases of all future obligations.

Marin Katusa, chief executive officer, said a previously announced transaction with UPE failed because a financing by UPE did not close. He said the company continued working with UPE management and created what he described as a more complicated, but ultimately better, transaction for the company.

Katusa said the current deal gives the company the full US$6 million upfront rather than over 12 months and eliminates financing and credit pricing risk for the company. He also said the current carbon credit market continues to be challenging, noting that CORSIA-tagged credits have been liquid and selling for above US$8 per credit, while non-CORSIA-tagged credits in the portfolio have seen limited to no buyer interest over the last 12 months.

He said the agreement monetizes the current value of the Community Carbon Stream and the inventory of carbon credits by selling them for total consideration of US$6.0 million and receiving the entire amount upfront.

Carbon Streaming said it will continue to focus its resources on maximizing value for shareholders in its existing portfolio and on recovering assets through ongoing litigation. The company said it has filed a statement of claim against certain former executives, board members, consultants and associated entities, and said certain defendants have filed counterclaims that it believes are without merit.

The company said it has filed a defence to those counterclaims and will continue to evaluate acquisitions, divestments, corporate transactions, financings and other strategic partnership opportunities aimed at maximizing shareholder value.