Microsoft Climate Innovation Fund will align its investments with the Inflation Reduction Act (IRA), which has earmarked $370B for climate-focused initiatives.
Launched in 2020, the $1B Climate Innovation Fund still has $400M
available for investments. The fund will direct its future investments
into areas that are set to receive incentives under the IRA, such as
carbon removal, sustainable aviation fuels, green building materials,
and renewable energy.
- The fund was launched with the goal of reducing a gigaton of carbon by 2050.
- Initially, the fund backed other climate funds but also began taking direct stakes in companies.
- Microsoft
invests in startups making a meaningful climate impact, ensuring
developing economies benefit from climate solutions, operating in
underfunded markets, or aligned to its core business.
- Sophie
Purdom, the co-founder of Climate Tech VC, expects funding for
climate-focused startups to double or triple due to the introduction of
the IRA.
