Dealflow | October 27, 2021

Generation stands up Just Climate for capital-intensive climate solutions

Amy Cortese and David Bank
ImpactAlpha Editor

Amy Cortese

ImpactAlpha Editor

David Bank

ImpactAlpha, Oct. 28 – Goldman Sachs Asset Management, Microsoft Climate Innovation Fund, Ireland Strategic Investment Fund and Harvard Management Co. are among the founding partners of Just Climate, which aims to mobilize capital for companies and projects tackling hard-to-decarbonize industries.

Generation Investment Management’s David Blood said the new subsidiary will finance “typically asset-heavy parts of the climate transition that are often too capital intensive, unproven at scale or in geographies too challenging for investors to consider.”

Blood will chair the new unit, with Generation’s Colin le Duc as vice-chair. Shaun Kingsbury, ex- of the U.K. Green Investment Bank, has joined as chief investment officer. The firm provided no financial details on the size or scale of the investment unit.

Dornbusch’s law

Generation’s Al Gore told Morgan Stanley’s Audrey Choi at the bank’s Sustainable Investing Summit that the tipping point has arrived in the race to net zero greenhouse gas emissions.

“We are at the point where we have that multi-sector alignment, and we are finally generating the momentum,” Gore said, citing the late German economist Rudi Dornbusch. “His law says this: ‘Things take longer to happen than you think they will. But then they happen faster than you thought they could.’