Livelihoods Launches Fourth Climate Fund

Impact investment platform Livelihoods has announced its fourth fund, Livelihoods Carbon Fund 4 (LCF4). This fund focuses on nature-based climate solutions, carbon sequestration, climate investment, sustainable development, and ecosystem restoration. It aims to support projects that can remove or avoid between 7 million and 10 million tonnes of carbon dioxide (CO2) emissions over 25 years while improving living conditions for about 500,000 people.

The fund has secured €124 million (USD $142 million) in its first close and is aiming for a total of €150 million (USD $171 million). This initiative brings together corporate investors to finance long-term projects that tackle climate issues and support communities affected by environmental changes.

Corporate Backing and Fund Structure

Paris-based Livelihoods started in 2011 when Danone opened its nature-focused investment fund to outside investors. It now has support from 20 companies. LCF4 was launched with backing from major organizations, including Danone, Hermès, Mars, Mauritius Commercial Bank, McCain, SAP, Schneider Electric, and Voyageurs du Monde.

The fund will focus on mobilizing private capital and combining it with field expertise to create projects that restore ecosystems, build climate resilience, and assist local communities. Livelihoods has stated that its approach includes working with non-governmental organizations (NGOs), local stakeholders, and communities to design and implement projects that yield long-term environmental and social benefits.

Previous Impact and Project Development

Since its establishment, Livelihoods has developed 47 large-scale projects in Africa, Asia, Europe, and Latin America. The platform reported that these efforts have helped avoid or remove 5.4 million tonnes of CO2, planted 160 million trees, and improved the livelihoods of 2.4 million people.

The newly launched LCF4 fund will follow this model by investing in community-led projects in areas like agroforestry, mangrove restoration, regenerative agriculture, and rural energy solutions. These projects will receive upfront financing, with risks and outcomes shared among the partners involved.

Focus on Nature-Based Climate Action

Livelihoods has noted that companies investing in the fund are prioritizing emission reductions within their value chains. However, some emissions remain hard to eliminate in the short term. This creates a need for further climate action beyond direct business operations.

The fund is designed to support projects that combat the degradation of natural ecosystems while aiding communities facing increasing environmental and climate-related risks. Investments will focus on restoring forests, mangroves, and agricultural soils, which are important for carbon storage and climate adaptation.

Improving Community Resilience

According to Livelihoods, LCF4 will fund projects aimed at restoring crucial natural resources while supporting sustainable livelihoods. The fund’s goals include enhancing economic opportunities for rural communities, strengthening environmental resilience, and producing measurable climate results.

The organization stated that the projects will be developed in partnership with local entities to ensure that environmental restoration also provides social benefits for the communities involved in implementation.

Statement from Livelihoods CEO

Eric Soubeiran, CEO of Livelihoods, mentioned that companies must speed up emissions reductions and help protect ecosystems that support global communities.

“With LCF4, we are mobilizing private capital to back projects that offer credible, measurable solutions capable of making a real impact on the ground,” Soubeiran said.

The launch of LCF4 shows ongoing investment interest in nature-based solutions as companies search for ways to address climate challenges while supporting ecosystem recovery and community development.