India | May 31, 2022

Aavishkaar seeks to raise a $500 million carbon fund for India, South Asia and Southeast Asia

Dennis Price
ImpactAlpha Editor

Dennis Price

ImpactAlpha, May 31 – India-based Aavishkaar Capital says it’s raising carbon fund of up to $500 million for investments in India, South Asia and Southeast Asia. The impact investment firm expects to close on at least $200 million by end of year, reports LiveMint.

The Carbon First Fund aims to help companies meet net-zero commitments with investments in agroforestry, land management, regenerative agriculture and mangrove projects that generate carbon credits. “We will invest in businesses that are creating natural infrastructure with an aim to benefit from what is happening in the carbon market,” Aavishkaar Capital’s Sanchayan Chakraborty told LiveMint.

Offset LPs

Aavishkaar has closed six funds and manages close to $500 million in assets in India, emerging Asia and sub-Saharan Africa.

Chakraborty says development finance institutions from previous funds are expected to join the carbon fund, as well as corporates needing to offset their own carbon emissions.