Carbon Equity Raises €105M For Climate Tech Fund

In a strong vote of confidence for the climate tech industry, Amsterdam-headquartered Carbon Equity closed €105 million in its third Climate Tech Portfolio Fund, taking the firm's assets under management (AUM) to €300 million in only three and a half years since its 2021 inception. The milestone reflects a general increase in demand for climate-focused private equity and venture capital among private investors, while overall market sentiment regarding climate investments remains volatile.

The recently closed Fund III has the potential to back over 150 climate tech firms through more than 25 specialist funds in Europe and the United States. The fund will focus on key sectors like green hydrogen, CO2-free cement, iron-air batteries, and advanced proteins like sustainable meat alternatives to conventional meat. This diversified and proactive investment approach demonstrates Carbon Equity's intention to support solutions that are likely to play a central role in the energy transition globally during the next decades.

The strong growth in AUM and reach of Carbon Equity has been paralleled by an equally significant growth in its investor base, which is now over 1,260 individuals and institutions. This growth in demand mirrors increasing interest in democratized climate investing—an avenue the company has been aggressively promoting. Through aggregation of capital into high-impact private equity and venture capital funds, Carbon Equity makes investment opportunities once accessible to only big players available to individuals and smaller institutions.

"These are just the opening shots," opined Liza Rubinstein, Co-founder and Impact Head of Carbon Equity. "We will continue to provide as many as possible with opportunities to get their capital working in support of the energy transition and build even greater momentum and transition co-ownership."

While others have intimated that climate investing is losing its appeal and investor attention is turning elsewhere, Carbon Equity's newest fund dissolves such pressures. Saskia Bruysten, Partner and Co-founder International, came straight forward in addressing such concerns by saying, "Some say the moment for climate investing has passed. That attention is turning elsewhere. That the momentum is fading.". But this fund has a different story to tell: Private capital is stepping up – and driving the energy transition forward."

Established with the vision of making climate investing mainstream, Carbon Equity is establishing itself as a leading mobilizer of private capital in the climate sector. Its investment strategy provides capital to more than 200 climate-oriented companies with both financial performance and the chance to be part of the world's effort against climate change. The company's model of investing in a diversified portfolio of specialist funds enables exposure to innovative climate solutions across the board, ranging from decarbonizing heavy industry to transforming the global food system.

In the wider environment, the conclusion of Carbon Equity's Fund III is against the backdrop of accelerating worldwide acknowledgment that private capital is going to need to play its part in underwriting the transition to a decarbonized future. While public money and government support are in themselves insufficient to deliver global levels of decarbonization, there is growing dependence on the engagement of the private sector. Private equity and venture capital, notably, possess both the flexibility and risk appetite to take early-stage innovations to mass.

“This latest close is more than just a funding milestone—it’s a statement of intent,” the firm declared. “Our community of investors is backing companies working on solutions we’ll need for decades to come.”

Carbon Equity’s message is clear: hope is not a passive emotion but a deliberate investment. “Hope is a choice. And we’re backing it with €300 million,” the company stated. Their momentum signals a strong counter-narrative to the idea that climate investing has peaked. Instead, it points to an accelerating belief among investors that long-term sustainability is not just a moral imperative, but also a sound investment strategy.

With Fund III up and running, Carbon Equity is ready to amplify its impact across the climate tech ecosystem. By marrying profit and purpose and broadening access to climate investment opportunities, the company is not just investing in the technologies of the future—it's building a wider movement of investor-owners united by a determination to make real-world impact.