Private climate investment is getting another momentum – a continuation of last week’s developments. Lowercarbon Capital – a venture capital fund that invests in promising green technology, attracted a 20 million dollar investment from Spanish bank BBVA.
The investment will be focused mainly on the carbon capture sector. According to Javier Rodríguez Soler, Head of Global Sustainability at BBVA, the company is expecting to see new business models offering solutions to climate change growing significantly in the coming years, so BBVA would target to support them.
BBVA also wants to help its customers not only by providing financing but also by investing in companies that are revolutionizing the green transition and driving innovation.
“BBVA has identified decarbonization and ‘green’ technology as two of the priority areas for investment. Lowercarbon is the right partner to start investing in these areas,” added Mr. Soler.
Lowercarbon Capital, with headquarters in the US, announced last week it raised $350 million specifically dedicated to carbon removal startups with the potential to achieve truly significant levels of CO2 removal.
The company is a startup as it was founded only in 2018 by Chris and Crystal Sacca but has a strong investment portfolio, mainly focused on four areas: energy, climate, mobility and agricultural technology.
Some startups like Commonwealth Fusion Systems and Solugen have achieved a unicorn status as they are valued at more than $1 billion. Lowercarbon has also supported popular companies in the carbon removal space like Heirloom, Running Tide and Verdox holding promises in reaching gigatons of CO2 permanent removal and scaling worldwide in the coming years.
“Lowercarbon has been investing in carbon removal since our inception. Now, with demand multiplying and technology accelerating, we’re doubling down. Having BBVA, one of the world’s leading financial institutions, invest in this work is a testament to the scale of the opportunity”, said Chris Sacca, co-founder of Lowercarbon Capital.
Decarbonization is an attractive opportunity for investment companies willing to profit from its growth and contribute to the huge funding effort needed to scale the green tech industry. It’s estimated that by 2050 a global investment of $275 trillion, or greater than 8% of worldwide GDP is needed to decarbonize the economy.
This has prompted both financial institutions and the venture capital industry to take an interest in climate-related investments. Curiosity is another driver of momentum as companies want the front row in witnessing climate change mitigation reaching widespread adoption.