Just Climate Launches Natural Climate Solutions Investment Strategy
Climate solutions-focused investment business Just Climate announced announced the launch of its new Natural Climate Solutions (NCS) strategy, aimed at directing capital at scale globally to businesses focused on natural climate solutions, generating the highest climate impact as well as attractive financial returns.
Founded in October 2021 by Generation Investment Management, a sustainability-focused investment firm chaired by former U.S. Vice President Al Gore, Just Climate aims to deliver impact by focusing on investments in projects and companies in hard to abate sectors and geographies, while simultaneously delivering appropriate risk-adjusted returns. The fund targets catalytic climate solutions in sectors including energy, transport, industry, and buildings and natural climate solutions for food, agriculture, and oceans.
While it originally also was focused on natural climate solutions for food, agriculture, and oceans, it did not have a dedicated strategy in that arena until now.
The launch of the new strategy follows Just Climate’s recent announcement that it has raised $1.5 billion for its inaugural fund, Climate Assets Fund I, closing the fund significantly ahead of its initial $1 billion target.
According to the Intergovernmental Panel on Climate Change, agriculture, forestry and other land use accounts for 23% of global greenhouse gas (GHG) emissions. Natural climate solutions are projected to deliver close to 7 gigatons of CO2 abatement per year. That’s about a third of the 2030 net emissions reduction targets required by the Paris Agreement.
Just Climate’s new NCS strategy will target businesses focused on natural climate solutions such as protecting, managing and restoring forests, wetlands and agricultural areas and avoiding emissions from agriculture, forestry and other land use. The fund will combine climate-related benefits of nature from physical commodity production to carbon storage, while contributing to biodiversity, pollination, nutrient cycling, and the quality and quantity of water provision.
The new fund will be headed by Eduardo Mufarej, Founder of Good Karma Partners, who has more than 25 years of experience as an investor, executive and entrepreneur, including in private equity and climate solutions.
Mufarej, who will serve as Co-Chief Investment Officer and Head of Natural Climate Solutions at Just Climate, said:
“Scaling natural climate solutions will involve building and growing businesses around the world that can advance sustainable agriculture, ecosystem restoration and durable carbon removal. The Global South has a key role to play, where both the growth opportunity and potential for impact are greatest. I am delighted to join Just Climate’s global leadership as we look to scale the platform.”
In addition to the launch of the new strategy, Just Climate announced that it has opened an office in Brazil. According to the firm, Having an office in Brazil, the company said, will enhance its capabilities and experience in key regions, such as Latin America, where many of the highest growth opportunities in natural climate solutions exist.
Clara Barby CBE, Senior Partner of Just Climate, said:
“We believe natural climate solutions are at a tipping point, and that an emerging ‘restoration industry’ can mirror the success of the renewable energy industry. “