What we do
Given the time value of carbon — the concept that greenhouse gas emissions cut today are worth more than cuts promised in the future — we need low (or no) carbon solutions that are transformational rather than incremental.
Getting on track for net zero by 2050 means radically reducing all emissions by 2030, while at the same time conserving, restoring or better managing ecosystems and working lands to reduce or remove CO2 from the atmosphere.
We work in partnership to commercialise and scale highest impact climate solutions that we believe can deliver outsized emissions abatement this decade, a just transition for the benefit of people everywhere and attractive risk-adjusted financial returns.1
Capital allocation imperative
Shaun Kingsbury CBE, Chief Investment Officer: “Incremental change alone cannot deliver both net-zero emissions and an equitable and habitable planet in the timescales required. If the financial sector seeks to enable a whole economy transition, innovative approaches to allocating capital towards the climate transition are needed.”
Climate solutions
Industrial climate solutions
We believe capital flows into climate solutions are significantly lower than needed. They also flow disproportionately to a subset of climate solutions that are either asset-light or already largely de-risked. To get on track for net zero by 2050, we must radically reduce all emissions by 2030, while also working with nature to remove emissions.
We prioritise solutions for the highest-emitting, hard-to-abate industries that have the potential for outsized emissions abatement this decade.
With the right investment support, solutions for these industries can scale rapidly to achieve better gross margins, a lower cost of capital and widespread market adoption. In our view this is the path to highest climate impact and attractive risk-adjusted returns for investors.1
Natural climate solutions
We look forward to revealing more on this new strategy in the near future.
An overview of our portfolio
Read more about our current portfolio below.
Meva Energy
Meva Energy has created an innovative modular gasification technology to generate renewable, synthetic gas that can be used as a low-carbon substitute for fossil-based natural gas within light manufacturing sectors.
Climate impact
Meva sources sustainable waste wood as feedstock and converts it into a substitute for fossil-based natural gas, utilising a patented gasification process and technology. The technology produces biochar as a by-product, which locks in about 10% of the emissions that would occur if the wood waste was simply burnt to produce heat. One of the conclusions from our fuels roadmap was to prioritise biomass for energy when the alternative solution is far from production-ready. This is true of our investment in Meva where greenhouse gas emissions from industrial heat cannot be easily electrified and limited alternatives exist. Over time, biochar may have even further greenhouse gas mitigation if used as an animal feed.
H2 Green Steel
H2 Green Steel aims to accelerate the decarbonisation of the steel industry and is currently working to develop a first-of-its-kind, large-scale, green steel plant in northern Sweden called the Boden Project.
Climate impact
Steel production emits about 7% of energy sector CO2 emissions annually, according to the International Energy Agency. It is one of the hardest-to-abate industries and an essential area of the economy to decarbonise. H2 Green Steel’s greenhouse gas mitigation is based on its manufacturing process, which uses green hydrogen (hydrogen created with 100% renewable electricity) to reduce iron ore. This is then combined with steel scrap in an electric arc furnace to produce steel with about 95% lower carbon intensity than traditional steelmaking (in a blast furnace).1 We believe H2 Green Steel will also be instrumental in wider decarbonisation because it would become one of the world’s largest green hydrogen projects (150MW). In our view, this will be transformational in starting the cost-down trajectory of green hydrogen, which has huge potential to be used as a decarbonisation lever for other hard-to-abate industries.
1. Source: H2 Green Steel company estimate.
ABB E-mobility
ABB E-mobility is a Swiss-based company that produces electric vehicle charging solutions, helping decarbonise road transport by accelerating the deployment of its charging infrastructure.
Climate impact
According to the Intergovernmental Panel on Climate Change, around 15% of all greenhouse gas emissions come from the transportation sector, which has traditionally been hard to decarbonise. We believe ABB E-mobility will help decarbonise road transport by accelerating the deployment of its solutions ranging from smart chargers for the home to high-power chargers for highway stations of the future, solutions for electrification of fleets and opportunity charging for electric buses and trucks. In our view, this business will have a significant impact on emissions abatement in the hard-to-decarbonise road transportation sector.
Infinitum
Infinitum is a manufacturer of electric motors that are smaller, lighter and more serviceable than conventional motors, and can be used in a wide array of applications, delivering a step change in efficiency and ultimately electricity consumption.
Climate impact
According to the International Energy Agency, motors are the largest single end-user of energy. Infinitum’s technology seeks to tackle the approximately 23% of global greenhouse gas emissions which come from electricity generation – with as much as half of this electricity being used to power electric motors. Infinitum’s motors are more efficient than available alternatives thanks to design features including variable frequency drive (VFD) motors, a type of motor drive that controls speed and torque by varying the frequency of the input electricity. This new generation of motors – smaller, lighter and quieter – can be used in applications like fans for heating, ventilation and air conditioning; pumps; material handling; mobility and power generation. If VFDs were used at scale, it is estimated that they would reduce energy consumption in the industrial and commercial sectors by as much as 11%, according to the U.S. Department of Energy.
Ascend Elements
Massachusetts-based Ascend Elements transforms spent lithium-ion batteries into critical materials used in the creation of new batteries, helping to accelerate the roll out of electric vehicles.
Climate Impact
The International Energy Agency forecasts [1] that electric vehicles will represent more than 60% of vehicles sold globally by 2030. Technological solutions are needed to help support this significant industry growth. Ascend Elements’ technology provides a closed-loop solution for the production of critical battery materials, meaning a cleaner manufacturing process and fewer batteries going to landfill.
The company’s activities span from electric vehicle battery recycling to commercial-scale production of lithium-ion battery precursor (pCAM) and cathode active materials (CAM). Its Apex 1 facility in Hopkinsville, Kentucky, will be North America’s first sustainable cathode precursor manufacturing facility, due to open in early 2025. When completed, Ascend Elements aims to produce sustainable pCAM and CAM for up to 750,000 electric vehicles per year.
Our investment approach
We have four core pillars in our investment approach.
Climate-led research
We build on Generation’s proven research process by authoring roadmaps that find and support transformational solutions. Our starting point is to understand emissions pathways, abatement costs and the catalytic opportunity. These roadmaps enable us to identify opportunities and position ourselves competitively on deals.
Integrated due diligence
Our diligence process assesses for high impact, high-quality businesses backed by strong management teams at a compelling valuation. We are looking for business models where outsized emissions abatement drives attractive risk-adjusted returns.1
Flexible financial structuring
We can invest in companies or projects to commercialise largely proven technologies through tailored forms of alternative capital deployment. Our expertise in capital structuring allows us to amplify the impact of our investments and influence exits at optimal times.
Portfolio management
We are an active manager and can provide specialist portfolio support to enhance value creation, including engineering, carbon accounting and corporate partnerships.
- Just Climate seeks to deliver attractive risk-adjusted financial returns, but there can be no guarantee this goal will be achieved.