Microsoft announces Climate Innovation Fund For Technology Solutions.
Microsoft is pleased to announce an open call for the Climate Innovation Fund to accelerate technology development and deployment of new climate innovations through equity and debt capital.
Microsoft will primarily deploy this capital in two areas:
to accelerate ongoing technology development by investing in project and debt finance; and
to invest in new innovations through equity and debt capital.
In addition to this new fund, they will continue to invest in carbon monitoring and modeling projects through the AI for Earth program, which has grown over the past two years to support more than 450 grantees across more than 70 countries.
The primary focus of the Microsoft Climate Innovation Fund is to:
Invest in emerging climate technology solutions that have early commercial traction and need capital to scale in the market.
Provide project financing to bring existing climate solutions to scale
Invest directly in companies, with opportunities to:
Scale new innovative solutions in the market
Demonstrate the viability of new technologies
Partner with other investors to meet the world’s climate objectives
Climate Innovation Fund will commit to invest $1 billion over the next four years.
The Fund does not have
Microsoft Climate Innovation Fund does not have a mandate to:
Provide grants or donations
Lead an investment round
Take a majority ownership stake in a fund or company
Fund publicly traded companies
Microsoft will focus on areas such as direct carbon removal, digital optimization, advanced energy systems, industrial materials, circular economy, water technologies, sustainable agriculture, and business strategies for nature-based markets.
Microsoft will focus the funding on investments primarily based on four criteria:
Climate impact: Meaningful, measurable climate solutions in the areas of carbon, water, waste, and ecosystems.
Underfunded markets: Investing where the capital need for climate solutions is not being met.
Shared alignment: Technologies that are relevant to Microsoft’s core business and that of the customers.
Climate equity: Ensuring developing economies and underserved communities benefit from climate solutions