Amsterdam-based Carbon Equity unveiled its new Climate Infrastructure Fund I on Friday, designed to finance various climate infrastructure projects. The fund allows for a minimum investment of €100,000, making it more accessible to a broader range of investors. Carbon Equity has successfully raised €10 million during the fund’s initial close and aims to expand it to €50 million.
Carbon Equity’s previous endeavors include the Climate Tech Portfolio Fund III, which closed at €60 million. The new fund, however, shifts focus from high-risk climate innovations to more stable, lower-risk projects like hydrogen and biogas facilities, solar parks, and EV charging stations. This pivot is intended to provide quicker capital deployment and earlier returns, such as through offtake agreements, without sacrificing impact.
Scope of the Climate Infrastructure Fund I
The Climate Infrastructure Fund I will invest in 3 to 5 infrastructure funds, ranging from €500 million to €2.5 billion, covering 40 to 50 projects. These projects, mainly within the EU, will focus on both new and operational initiatives. The fund’s classification as an SFDR Article 9 fund underscores its commitment to sustainable investments.
This new initiative contrasts with Carbon Equity’s previous funds, which invested in numerous climate innovations across the EU and the US. Unlike those funds, the Climate Infrastructure Fund I will deploy proven technologies, enabling quicker capital utilization and more stable early returns.
Carbon Equity: Empowering Climate Investors
Founded by a team including Jacqueline van den Ende and Tim Molendijk, Carbon Equity has created a platform that enables everyday investors to co-invest with experts in climate-oriented ventures. Since its inception, the platform has facilitated over €260 million in investments from more than 900 investors.
The firm’s commitment to making climate investment accessible aims to foster a community of investors motivated to combat climate change. The minimum investment threshold is set to decrease to €10,000, broadening participation even further and aligning with the company’s mission to democratize climate investments.
Carbon Equity’s Climate Infrastructure Fund I demonstrates the company’s adaptive strategy in tackling climate change. By focusing on infrastructure projects, it offers lower-risk, stable-return investments, appealing to a wider investor base. These projects complement the high-risk, high-reward climate innovations, providing a balanced approach to climate financing.
