While most climate investments pour into energy and transportation, nature has often been left behind. In 2022, only $35 billion flowed into nature-based climate solutions, compared to a staggering $1.46 trillion funneled into other climate sectors. Now, Just Climate, an offshoot of Al Gore’s Generation Investment Management, plans to change that narrative. The firm recently raised $175 million from major backers, including Microsoft’s Climate Innovation Fund and CalSTRS, to invest in projects that prioritize biodiversity and natural ecosystems.
Until recently, Just Climate focused on industrial climate solutions, much like most private climate investors. But with its new fund, the firm is setting its sights on natural climate solutions—spanning areas like sustainable farming, forestry, and land restoration.
These nature-based efforts address critical greenhouse gas emissions tied to agriculture, forestry, and land-use changes, which together account for around 15% of global emissions each year. But they also go a step further by removing carbon already in the atmosphere.
Reforestation projects, for instance, plant trees on degraded land, capturing carbon and restoring ecosystems. Microsoft has already backed such projects, including a recent investment in Chestnut Carbon, a startup focused on large-scale reforestation.
With its new fund, Just Climate aims to support solutions that tackle both biodiversity loss and land-use emissions. Potential investments include:
- Biological fertilizers and eco-friendly pesticides
- Restoration finance platforms
- Technologies that verify carbon reduction and biodiversity impact
The goal is not just to reduce emissions but to restore nature’s balance while offering reliable ways to measure progress.
The fund’s first deal came earlier this year, leading a Series B round in NatureMetrics. This innovative company uses environmental DNA (eDNA) to assess biodiversity levels by collecting DNA from water or soil samples—offering a powerful tool for monitoring ecosystem health.
Nature-based climate solutions have long struggled to attract investment, partly because they’re harder to quantify than renewable energy or electric vehicles. But with backers like Microsoft and CalSTRS, Just Climate hopes to shift investor attention toward nature’s critical role in fighting climate change.
Projects that restore ecosystems, improve agricultural practices, or protect biodiversity don’t just cut emissions—they also deliver long-term environmental and social benefits.
As global interest grows in sustainable finance, Just Climate’s fund signals a major step toward bridging the funding gap for natural climate solutions—and putting nature back at the center of the climate conversation.
