A climate-focused investment firm has announced it has raised $85 million to help fund companies focused on clean energy and decarbonization.
ESG Today has reported that Aligned Climate Capital raised twice as much in this round as it did during its first. The firm plans to use these funds to invest in companies that can scale their green technologies quickly.
"The clean energy transition isn't a technology challenge; it's a deployment challenge," Aligned Climate Capital CEO Peter Davidson said in a release. "The solutions needed to decarbonize the economy already exist, but scaling them requires capital, expertise, and market access."
Aligned — which has offices in New York and Los Angeles — has already invested in over a dozen companies across the United States that focus on a variety of green technologies. These include clean energy storage, carbon capturing, electric vehicle charging, heat pump water heaters, and wind energy. The company has also partnered on more than 30 solar projects, mostly in Maine and New Hampshire.
"Our venture fund is investing in companies accelerating this transition by deploying proven clean energy technologies that are already outcompeting fossil fuels and delivering real impact today," Davidson said.
In addition, Aligned donates 3% of its carried interest (a share of the profits) to nonprofit organizations that work to combat climate change.
The firm isn't alone in this effort. Other climate-focused venture capital funds exist, including one that supports early-stage climate biotech companies trying to make it to market. Individuals can also support cleaner and greener businesses by investing in eco-friendly stocks.
These investments aren't just environmentally friendly — they're also good business. Banks are increasingly making money funding climate-smart projects.
Meanwhile, this $85 million announced by Aligned Climate Capital is just a drop in the bucket. The company says that, over the next decade, about $47 trillion in global investments will be needed to effectively transition to a cleaner economy.
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