Microsoft announces climate innovation fund

Microsoft is pleased to announce an open call for the Climate Innovation Fund to accelerate the technology development and deployment of new climate innovations through equity and debt capital.

Zones

Microsoft will deploy this capital mainly in two areas:

• accelerate continued technological development through investment in project and debt financing; and
• invest in new innovations through equity and debt capital.

In addition to this new fund, they will continue to invest in carbon monitoring and modelling projects through the AI for Earth programme, which has grown over the past two years to support more than 450 grantees in over 70 countries.

Microsoft main objective 

The main objective of the Microsoft Climate Innovation Fund is to :

• Invest in emerging climate technology solutions that have early commercial traction and need capital to develop in the market
• Provide project funding to scale up existing climate solutions
• Invest directly in companies, with opportunities to :
• Adapt to new innovative solutions on the market
• Demonstrate the viability of new technologies
• Partnering with other investors to achieve global climate goals

Information on funding

The Climate Innovation Fund will commit $1 billion over the next four years.

Microsoft Climate Innovation Fund does not have a mandate to :

• Provide grants or donations
• Conducting an investment cycle
• Taking a majority stake in a fund or company
• Financing listed companies

Microsoft eligibility criteria 

Microsoft will focus on areas such as direct carbon removal, digital optimisation, advanced energy systems, industrial materials, the circular economy, water technologies, sustainable agriculture and business strategies for nature-based markets.

Criteria

Microsoft will focus funding on investments based primarily on four criteria:

• Impact on the climate : Meaningful and measurable climate solutions in the areas of carbon, water, waste and ecosystems.
• Underfunded markets : Invest where the need for capital for climate solutions is not met.
• Shared alignment : Technologies that are relevant to Microsoft's core business and to customers.
• Climate equity : Ensure that developing economies and underserved communities benefit from climate solutions.

For more information, please visit Microsoft.