Climate Change Capital holds first close on $830m

The UK-based green investor says it will raise more than $1bn for its fund for developing markets, after a swift first closing.

Climate Change Capital, a UK investment banking group dedicated to investment in clean energy and a low carbon economy, is on target to raise more than $1 billion for the world’s largest private sector carbon fund.

It has already raised $830 million in only three months.

Investors include ABP and PGGM, two of the world’s top five pension funds, and Centrica, a UK-based international energy group, and a global emerging markets banking group. The money raised will be invested in projects principally in developing countries that will lead to dramatic reductions in the amount of greenhouse gases and specifically carbon being emitted into the atmosphere.

James Cameron, vice-chairman of Climate Change Capital, said: “This is further proof that the so-called ’green economy’ has arrived, as the world realises that combating global warming is an economic opportunity as well as a necessity.  The profile of the investors backing this new asset class, created due to the Kyoto Protocol, confirms this, reflecting very real progress in the development of the carbon market.”

The fund’s objective is to generate attractive levels of returns by acquiring a diversified portfolio of different types of carbon assets and derivatives. The fund also has the power to invest in projects and companies which develop and generate greenhouse gas reductions.