Just Climate Raises $1.5 Billion for Industrial Climate Solutions Fund
The fund will invest in hard-to-abate industries to reduce their emissions
Net-zero investment firm Just Climate has raised $1.5 billion for its debut Climate Assets Fund I, exceeding its $1 billion target, which will be invested in decarbonization solutions for industries across the globe.
The fund is designed to pursue investments in growth-stage, asset-heavy companies globally which have the potential to deliver transformational climate impact across some of the highest-emitting, hard-to-abate industries— including energy, mobility, industry, and buildings.
Investors in the fund include California State Teachers’ Retirement System, Canada’s Public Sector Pension Investment, Swedish pension funds AP4 and AP2, Australia’s Colonial First State Investments, and Chicago-based impact investor Builders Asset Management.
Just Climate has already invested in Switzerland-based electric vehicle charging company ABB E-mobility, Sweden-based industrial start-up H2 Green Steel and Sweden-based gasification technology specialist Meva Energy.
“More than 50% of the world’s emissions come from the hard-to-abate industries. Without radical and urgent changes to how the financial sector approaches the decarbonization challenge in these industries, which are the building blocks of our economy, there will be no net zero by 2050. Proven, transformational climate solutions are being developed to decarbonize the industrial sectors. With the right investment support, we believe they can scale rapidly to achieve better gross margins, a lower cost of capital, and widespread market adoption,” said Shaun Kingsbury, Chief Investment Officer of Just Climate.
Just Climate was launched in 2021 by Generation Investment Management, the fund management business established by former U.S. vice president Al Gore and former head of Goldman Sachs Asset Management David Flood.
The Fund’s founding investor group includes Microsoft’s Climate Innovation Fund, which anchored the Fund, IMAS Foundation, Ireland Strategic Investment Fund, Harvard Management Company, the Imprint Group of Goldman Sachs, Hall Capital Partners, and its clients.
Weil, Gotshal & Manges served as fund counsel. Aztec Financial Services is the administrator of the fund.
The World Economic Forum recently launched a fundraising vehicle to unlock $3 trillion of financing needed yearly to reach net zero, reverse nature loss, and restore biodiversity by 2050.
The United Nations Climate Change Conference COP27 highlighted the need for global investments of $4 trillion annually in renewable energy until 2030 to achieve net zero emissions by 2050.