Climate Asset Management raises $650m across two funds

The firm’s natural capital vehicle has invested in a 400ha regenerative almond project in Spain, while its carbon strategy has backed the two million ha Restore Africa initiative.

Climate Asset Management has received more than $650 million in commitments from a range of LPs across its natural capital and carbon strategies.

The HSBC and Pollination JV’s Natural Capital Strategy is a closed-ended fund that has a $1 billion target. The Nature Based Carbon Strategy is also closed-ended and has a $600 million target.

The firm confirmed to Agri Investor that the $650 million commitments are split roughly evenly between the two funds – HSBC acted as the anchor investor for both strategies.

CAM also announced its natural capital vehicle made its investment as it participated in a regenerative almond production in Spain, which will also target biodiversity enhancement.

The natural capital strategy aims to deliver returns while making positive environmental contributions through regenerative management of natural assets such as farmland and timberland.

“To support the deployment of capital committed, NCS has developed a pipeline of natural capital investment opportunities, building on an initial investment into a land development project in Extremadura, Spain,” a statement said.

“The project aims to transform 400 hectares of traditionally flood-irrigated farmland to regenerative high-value almond production, with specific areas allocated towards enhanced biodiversity.”

CAM’s carbon strategy targets landscape restoration in developing economies to deliver carbon credits and biodiversity improvements to support global corporates in achieving their decarbonization targets.

The firm delivered the first tranche of a $150 million financing package it pledged to the Restore Africa program in May.

Restore Africa aims to restore two million hectares of land and directly support two million smallholder farmers by 2026 across Kenya, Ethiopia, Malawi, Tanzania, Uganda and Zambia.

CAM chief executive Christof Kutscher said: “Both investment strategies are grounded in nature-based assets and we find they are increasingly attractive to forward-thinking organizations that are themselves committed to the transition to net-zero.

“The commitments will help us to support bold and scalable nature-based investment solutions as we strive to secure a more climate-resilient, nature-positive and inclusive world.”