After receiving a lot of interest from institutional clients, including Microsoft's Climate Innovation Fund, Just Climate was able to raise $1.5 billion for its first fund.

The fund raising through Microsoft’s Climate Innovation Fund helped it beat the original target of $1 billion.

Just Climate, an asset manager founded by Generation Investment Management, aims to concentrate investment on the industries like cement, shipping, industry, and land use where reducing greenhouse gas emissions is most difficult.

Over 50% of global emissions, according to Shaun Kingsbury, Chief Investment Officer at Just Climate, come from hard-to-regulate industries. There won't be a net zero by 2050 if the financial sector doesn't make drastic and urgent changes to the way it confronts the decarbonization dilemma in these industries.

The company's first fund, Climate Assets Fund I, will concentrate on aiding businesses with tested technology in growing to a size that will enable them to draw in more risk-averse investors.

Kingsbury added that efforts were being made to decarbonize the industrial sectors using tried-and-true, game-changing climate solutions. Just Climate thinks they can scale quickly to achieve improved gross margins, a reduced cost of capital, and broad market adoption with the right investment support.

The fund also has support from the IMAS Foundation, Colonial First State Investments, Ireland Strategic Investment Fund, Harvard Management Company, and the California State Teachers' Retirement System.

The fund's initial investments include the Swedish gasification technology company Meva Energy, the electric vehicle charging company ABB E-mobility, and the industrial startup H2 Green Steel.