Climate Finance | May 4, 2023

Milestones reached for trio of climate investment funds

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, May 4 – The investment environment may be strained by macro trends, but fund managers are moving forward, particularly in the climate finance sector.

Japanese car maker Mitsubishi has secured $400 million for its planned $1 billion climate tech fund. The fund is on the hunt for carbon-cutting technologies that are ready for commercialization and scale. It aligns with Mitsubish’s goal of achieving net zero by 2050. Marunouchi Innovation Partners, an investment manger owned by Mitsubishi, is managing the fund. 

Oil majors’ climate hedge

A consortium of global oil majors is looking to secure $750 million for a fund that will invest in hardware and hard science-based climate ventures, Axios reports. The Oil and Gas Climate Initiative will invest up to $75 million each in companies developing green metal, chemical and concrete alternatives, clean energy, and supporting sustainable buildings and transport.

It is a second fund for OGCI Climate Investments, the venture arm of Aramco, BP, Chevron, ExxonMobil and Shell. Its first fund raised more than $1 billion.

Returns on inclusion

Energy Impact Partners scored $112 million for its Elevate Future Fund. Its hook: investing in companies advancing the clean energy transition and led by diverse founders. Addressing the climate crisis “requires a coalition of diverse thought, perspective and collaboration to make actionable progress toward decarbonizing the global economy,” said EIP’s Hans Kobler.

The fund is focusing on early-stage ventures.

It is backed by Amazon, GE, Microsoft’s Climate Innovation Fund and multiple energy and utility companies.

Natural capital

Boston-based Folium Capital has acquired $1 billion in farm and timber assets that it repositions for sustainable use. It looks for land that generates revenue from environmentally beneficial crops and timber as well as from carbon credits. It has invested in assets in the US, Europe, Australia and Latin America.

Folium has now launched its third Regenerative Natural Resources Fund to invest in sustainable agriculture and agroforestry. The firm is looking to raise $500 million.