Just Climate has announced new partnerships to accelerate investment in natural climate solutions, securing $175 million in funding. Institutional support includes backing from the California State Teachers’ Retirement System (CalSTRS) and Microsoft’s Climate Innovation Fund.
The initiative aims to direct capital into projects that support land-use transitions and biodiversity restoration, with a focus on scaling solutions in high-emission sectors. Land management currently contributes to around a third of global greenhouse gas emissions and remains the primary driver of biodiversity loss. Investments will target innovations such as biological fertilisers, sustainable agricultural practices, and carbon verification technologies.
In January 2025, Just Climate’s Natural Climate Solutions strategy made its first investment by leading a Series B funding round for NatureMetrics, a UK-based company specialising in environmental DNA (eDNA) biodiversity monitoring. The investment aims to expand NatureMetrics’ nature intelligence platform and AI-driven solutions, providing data to support biodiversity reporting and nature risk assessments.
CalSTRS’ involvement underscores the growing interest from institutional investors in nature-based investment models that align with long-term financial and sustainability goals. Microsoft’s participation highlights the role of corporate investment in advancing carbon removal technologies and developing more resilient supply chains.
Both organisations had previously backed Just Climate’s Industrial Climate Solutions strategy, reflecting a broader shift towards integrating nature and land transition investments into global sustainability efforts. Microsoft is also a founding member of the Just Climate Nature Alliance, a corporate-led initiative aimed at expanding the natural climate solutions market.
Just Climate’s Co-Chief Investment Officer, Eduardo Mufarej, emphasised the urgency of transitioning land-use systems, likening the scale of transformation to the energy transition.
“A rapid land transition is coming, and institutional capital must be directed towards solutions that can reshape food systems and drive ecosystem restoration. The importance of nature in investment decision-making is growing, and COP30 in Brazil later this year will bring further focus to this critical area.”
CalSTRS’ Investment Director, Kirsty Jenkinson, highlighted the alignment of this investment with long-term financial security and sustainability.
“Investments in land-use transition require specialist expertise and offer significant value. Our partnership with Just Climate aims to accelerate this shift while generating strong returns for our members.”
Microsoft’s Climate Innovation Fund echoed this sentiment, stressing the importance of scaling high-quality carbon removals and nature-based solutions as part of its broader decarbonisation strategy.
With momentum building ahead of COP30, the initiative reflects a growing recognition of nature’s role in addressing the climate crisis and the financial sector’s role in accelerating sustainable land-use solutions.
