Climate Investment has closed a $450 million Decarbonization Acceleration Fund, marking the firm’s second fund and its first dedicated growth equity vehicle to scale climate technologies beyond the venture stage.
The fund is designed to address what the firm describes as climate tech’s “missing middle,” the gap between early-stage funding and the larger capital required for full commercial deployment across industrial systems. The strategy targets companies with proven technologies and early commercial traction in sectors such as energy, industry, transport, and buildings.
Climate Investment said many climate tech businesses can secure capital for pilots and initial development, but struggle to access the larger funding needed to scale manufacturing and deployment. The new fund is structured to bridge that gap and accelerate adoption across real-world infrastructure.
The vehicle is already active, with investments completed in JessCo Solutions, XNRGY, XOCEAN, and Zeitview. These companies span emissions control equipment, energy-efficient cooling for data centers, ocean data and subsea surveying, and AI-driven infrastructure inspection.
The fund is backed by a mix of founding investors and strategic and institutional LPs, including Saudi Aramco, Occidental, Baker Hughes, CMA CGM, Development Bank of Japan, PTT Group’s ExpresSo NB, and Taranis Investment. It builds on Climate Investment’s broader platform, which manages approximately $1.8 billion in committed capital and has backed more than 40 climate technology companies.
The firm also highlighted its Operational Value Add framework, which measures the economic benefits delivered by its portfolio companies through improved efficiency, lower costs or increased revenues. Since 2019, Climate Investment estimates its portfolio has generated more than $600 million of operational value.
KEY QUOTES:
“DAF was created to close the gap between proven decarbonization technologies and large-scale deployment. Many solutions already exist that can reduce emissions in heavy industry while improving operational performance and profitability, and at scale they can strengthen the economics of the infrastructure systems they operate within. What’s often missing is the capital beyond venture and the commercial pathways to bring them to major industrial players and governments. DAF is designed to provide both.”
Joshua Haacker, Chief Investment Officer, Climate Investment
“Growth equity succeeds when scaling is repeatable. By pairing capital with hands-on industrial collaboration and an OVA lens grounded in actual cash flows, we help companies prove value, de-risk implementation, accelerate adoption and expand across global infrastructure markets.”
Patrick Yip, Managing Director And Head Of Growth Equity, Climate Investment
