Microsoft Climate Innovation Fund

In 2020, Microsoft announced a bold new environmental sustainability strategy focusing on carbon, water, waste, and ecosystems. As part of our commitment, Microsoft is investing $1 billion over the next four years in new technologies and innovative sustainability solutions.

The Climate Innovation Fund is a $1 billion investment initiative to accelerate technology development and deployment of new climate innovations through equity and debt capital. The fund will focus its 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 our customers.
  • Climate equity: Ensuring developing economies and underserved communities benefit from climate solutions.

The fund 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.

More specifically the Climate Innovation Fund

  • Invests in emerging climate technology solutions that have early commercial traction and need capital to scale in the market.
  • Provides project financing to bring existing climate solutions to scale.
  • Invests directly in companies, with opportunities to scale new innovative solutions in the market, demonstrate the viability of new technologies and/or partner with other investors to meet the world’s climate objectives
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