Historically funds management focussed on sustainability solutions with traditional capital flows have been overlooked. In funds management language Climate Capital Investing focuses on creating alpha through:
One of the driving forces for the creation of Climate Capital was the observation that the environment is mis-priced. Society consumes the finite resources offered by our natural environment at a rapid rate and often at absolutely no (financial) cost.
We are convinced that the world is rapidly moving to a polluter-pays regime and that with this move will come friction and loss for both sides of every transaction.
Our aim is to assist in the removal of the friction in new and emerging markets by participating as an early investor in these markets.
This is not to suggest that our investing is oriented towards over-the-horizon, high-risk technology commercialisation opportunities. On the contrary, we aim to invest in established technologies which demonstrate extraordinary environmental outcomes for a return which is at least equal to (on a risk-weighted basis) returns from competing businesses and technologies which do not produce the same quality environmental outcomes.
Climate Capital is developing a wholesale funds management and advisory capability. Our early work has directed us toward opportunities involving biogas generation and biodiverse sequestration.
Biogas generation is a renewable energy source and importantly, captures methane – a greenhouse gas which cause warming at over 20 times the rate of carbon. The beauty of biogas generation is that it is (relatively) cheap to install and operate. In addition, sources of biogas are abundant – most intensive animal husbandry operations can be converted to biogas generation and new waste water treatments present significant opportunity.
Biodiverse sequestration relates to the capture of atmospheric carbon in flora and soil which has been revegetated – often marginal farm land which can no longer produce at the efficiency levels required by modern agricultural practices. Importantly, biodiverse sequestration is more efficient at capturing carbon than monocultures (such as eucalypt and mallee species) and does not risk harming the environment as monocultures do through discouraging natural diversity of species.
Climate Capital Investing is developing a wholesale-only investment opportunity which will enable investors to allocate capital for up to five years at a time in the pipeline of climate-positive investment opportunities – all of which are expected to present returns in excess of typical benchmarks.
Our Investing criteria is:
Our Investor criteria is:
Whether you are an investor or a company seeking capital, email today to arrange a discussion with one of the Investing team.