Carbon Equity raises €100M for funding climate initiatives
In a significant development for the climate finance landscape, Carbon Equity, a leading climate fund investing platform, has raised €100 million for its Climate Tech Portfolio Fund II. As the climate tech industry grows, companies face challenges in expanding their engineering and technology operations. Many climate tech startups identify this as a significant challenge, emphasising the pressing need for support in this crucial area.
Funding boost to push climate transition
Amsterdam-based Carbon Equity, a prominent platform for climate fund investments, has secured €100 million for its second Climate Tech Portfolio Fund. This funding surpasses the initial target of €75 million, more than doubling the size of its predecessor, Fund I, which closed at €42 million in 2022.
The Climate Tech Portfolio Fund II is designed to invest in up to 10 carefully selected private equity and venture capital funds and indirectly channelling support to 150 to 200 climate initiatives. These encompass a broad spectrum of projects aiming to offer solutions for reducing greenhouse gas emissions, increasing energy efficiency, and promoting more sustainable use of resources.
There is a significant distance that remains to be covered on the path to becoming net-zero. However, these initiatives cover a range of transitions including green hydrogen projects, battery technology to cement production without using carbon. And industrial-scale heat pumps that utilise less energy, bioplastic innovations, smart thermostats, and next-generation proteins.
Tackling critical climate issues in Amsterdam
The success of Carbon Equity's funding initiatives reflects a maturing market with a growing global shift to combat climate change. The company has raised €200 million from 700 investors in less than three years, drawing support from entrepreneurs, C-level executives, private equity professionals, family offices, and institutional investors.
Looking ahead, Carbon Equity is launching its Climate Tech Portfolio Fund III, with a target of €125 million. This follows the strategies of Fund I and Fund II, which have already committed to 15 leading climate funds and invested in more than 100 climate tech companies.
As the world faces the urgent challenges of climate change, Carbon Equity's endeavours underscore not only the pressing need for solutions but also the reality of necessary investment opportunities that tackle critical climate issues. Amsterdam leads in climate tech with companies like Van de Bron focusing on wind, solar and biomass energy, GoodFuels driving the transition to fossil-free transportation, and Triple Solar utilising PVT panels for gas-free heating and cooling.
