Carlyle, a global investment firm, has launched a decarbonization-linked financing program to incentivize borrowers to reduce greenhouse gas emissions and hit climate-related targets.

The program represents one of the first decarbonization-linked financing programs in the U.S. private credit market. The firm is offering a pricing benefit associated with a borrower’s achievements in decarbonization and climate-related KPIs.

“We believe that strong ESG competencies are a hallmark of management excellence, and that successful decarbonization requires meaningful engagement between investors and businesses,” commented Mark Jenkins, Carlyle’s head of global credit. “Through this program, we seek to drive value by helping borrowers improve their competitive positioning, while building on Carlyle’s long history of ESG integration.”