Ludovic Theau

Climate Tech Partners (CTP) has reached first close for its new fund, anchored by $15 million each from Australian Ethical Investment (AEI) and the Clean Energy Finance Corporation (CEFC).  This achievement comes despite a challenging environment for tech and venture capital fundraising.

The strong institutional support reflects an appetite for a new model of venture capital funding, one that deploys capital in collaboration with corporate partners who are likely to be the end users of such technology. CTP’s co-operative approach with industry brings benefits for all parties involved by:

• Demand validation – de-risking investments through corporate validation.
• Decarbonisation solutions – Addressing corporate needs through a curated deal flow of targeted technology solutions.
• Portfolio acceleration – Creating high-probability customer pathways for early-stage companies.

The first close builds on a cornerstone investment from the BESEN Family Office, a renowned private equity investor, and separate vehicle commitments from Qantas and Airbus focused on aviation decarbonisation opportunities. CTP has so far secured over $50 million in commitments across the fund and aviation vehicle. In addition, CTP has secured 11 corporate partners across its core focus sectors of energy, transport, industrials, and mining.

Climate Tech Partners is set to deploy capital into a pipeline of high-potential startups focusing on companies at Series A. Guided by deep engagement with corporate partners, the fund has prioritised areas such as gridtech, low carbon fuels, and climate adaptation technologies.

The fund’s first close comes against broader global momentum for decarbonisation, despite US volatility. China, the world’s second largest economy, continues to accelerate investments in renewables, electrification, and advanced energy technologies. The European Union remains steadfast in its regulatory, policy, and capital market alignment toward emissions reduction and green innovation.

The recent election in Australia delivered policy certainty for the cleantech sector. This clarity drives investment to scale with greater confidence and long-term focus.

“We are thrilled to support Climate Tech Partners and their model, which is driven by industry demand,” said Ian Learmonth, CEO of the CEFC. “The team at Climate Tech Partners has a strong background in venture capital and tech investments and is well-placed to identify the next wave of technologies that will drive emissions reduction across key sectors. We are confident this team will deliver both environmental and commercial outcomes.”

Malcolm Thornton, Head of Growth Capital at the CEFC, said: “This investment supports the advancement of technology essential to Australia’s climate transition – including rapid prototyping, manufacturing, and exposure to market competition. The climate tech space in Australia is vibrant, and this is an important time to back innovative companies making breakthroughs in critical technologies.”

Ludovic Theau, Chief Investment Officer at Australian Ethical, said: “We’re pleased with this opportunity to advance our investment in early-stage climate technology. This Fund allows us to feed capital to the emerging companies in energy and climate tech that will shape a net-zero tomorrow.  We’re confident in the growth opportunity this represents and are committed to climate and tech as a source of competitive returns for our investors.”

“This partnership aligns with our Ethical Charter and our approach to be at the forefront of investment in future focused sectors that support a net-zero economy.”

Patrick Sieb, Co-Founder of Climate Tech Partners said: “We’re seeing a wave of breakthrough climate tech – electrification, sustainable fuels, next-gen grids -gaining real traction.”

“With tech readiness, corporate demand, and policy aligning, it’s a powerful moment to invest. Even in the US, bipartisan backing for energy security and sustainable fuels shows just how durable this opportunity is.”

Tom Kline, Co-Founder of Climate Tech Partners said: “The Australian Government is committed to long-term climate ambition, which sends a powerful signal to innovators and investors alike.”

“This is a once-in-a-generation chance for Australia to lead in climate solutions – and we’re proud to be driving it, backed by family offices, super funds, and government with corporate partners to derisk and accelerate our investments.”

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Jason Yetton

Westpac is launching Sustainable Upgrades home and investor loans for customers to make energy-efficient upgrades to their home, supported by the Clean Energy Finance Corporation (CEFC).

From Monday, 26 August, Westpac home loan customers can access a competitive variable interest rate of 4.49% p.a^[1] to install new features or technology in their property to improve its energy efficiency or climate resilience. Owner-occupier and investor home loan customers with an existing or approved eligible loan will be able to apply to borrow up to $50,000 with a loan term of up to ten years.

Westpac is the first bank to be supported by the CEFC’s $1 billion Household Energy Upgrades Fund (HEUF), a landmark program to help Australians access cheaper home energy solutions and affordable finance.

“Westpac’s new offering, backed by the Australian Government-owned ‘green bank’, will appeal to our customers wanting to make their home more energy-efficient,” said Jason Yetton, Westpac Chief Executive Consumer.

“We recognise more Australians want to play their part to reach a net zero future, and that starts at home. This announcement will help our customers to make more environmentally conscious choices and improve their homes at the same time.”

Research from Westpac shows nine out of ten Australians^[2] looking to renovate within five years would consider making a sustainable upgrade to their home.

“Increasing the uptake of renewable energy, storage, and related infrastructure is critical to Australia’s net zero ambitions and clean energy transition. The installation of more rooftop solar, home batteries and energy efficiency equipment will help manage household energy costs and unlock additional clean energy capacity. This means we can better manage energy demand and ultimately contribute to the creation of a stronger, more reliable and cleaner grid,” said Ian Learmonth, CEFC CEO.

Australians are increasingly looking to upgrade their homes with energy-efficient features and technologies. Close to two in five (38%) Australians would consider installing solar panels on their home, one in four would consider putting in solar batteries (27%) or changing to solar hot water (25%), and over a fifth would consider installing insulation (23%) or put in double-glazed windows (22%).

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Notes:
[1] Variable interest rates are subject to change.
[2] 89% of Australians who are looking to renovate their home within five years would consider making a sustainable/environmentally friendly upgrade to their home.

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Kristin Vaughan

Australia’s pioneer climate tech VC Virescent Ventures has confirmed its specialist portfolio is over $260 million, having backed 33 innovative climate tech businesses and funds/incubators.

The breadth and size of the portfolio reinforces Virescent Ventures’ leadership position in driving critical new investment in a diverse range of Australian businesses who are set to play a key role in the achievement of Australia’s net zero ambitions.

Virescent Ventures was established by the Clean Energy Finance Corporation (CEFC) in 2022 to manage its specialist early stage climate tech portfolio (initially comprising the Clean Energy Innovation Fund Fund I).

With the backing of the CEFC, Virescent Ventures is looking to raise a new fund (Fund II) targeting c. $200 million to further catalyse private sector investment in Australian climate tech opportunities, with a particular focus on sophisticated/wholesale investors. The new fund is expected to be corner-stoned by the CEFC and continue a similar investment mandate.

The goal of Fund II is to deploy a further $200 million or more into climate technologies over the next five years, with an investment strategy that focuses on four key thematics aimed at addressing global climate transition and decarbonisation challenges.

At 23 January 2024, the Virescent Ventures’ managed CEFC portfolio included commitments across these thematics to:

1. Clean energy transition (with ~$115 million, 44 percent of the portfolio)
2. Food and agriculture (~$28 million, 11 percent)
3. Circular economy and industry (~$53 million, 20 percent)
4. Mobility and smart cities (~$48 million, 18 percent)

The remaining ~7 percent of the portfolio (~$18 million) includes exposure to specialist seed funds and incubators.

The sub sectors, technologies, and processes underpinning these four thematics span a broad spectrum of software and hardware, infrastructure, chemical-industrial processes, and biologicals, across the following priority focus areas:

1. Decarbonising Transport: 20 percent of committed capital, across JET Charge, , MicroTau, Carbon
2. Revolution, Zoomo, OmniTanker, and SEA Electric
3. Decarbonising electricity generation: 21 percent across Sunman, Relectrify, Sundrive Solar, and Redback
4. Decarbonising sustainable food and agriculture: 11 percent across Loam Bio, Agriwebb, All G Foods, and Downforce Technologies
5. Enabling technologies including industrial IoT and energy efficiency: 9 percent into companies such as Morse
6. Micro, Thinxtra and Powour
7. Decentralised grid management: 8 percent across Gridcog, WattWatchers, GreenSync and Zen Ecosystems
8. Green hydrogen: 15 percent across Hysata and Hydgene.
9. Circular economy: 5 percent in Samsara Eco, Renewable Metals, and WorkbenchX
10. Resources: 5 percent in Novalith and SoNiA Green Tech

One of the recent investments was $2.6 million in battery recycling startup Renewable Metals, supporting the scaling and commercialising of its lithium-ion battery recycling technology.  The proceeds will be used to establish a pilot plant in Perth, WA, bring forward the construction of a larger scale demonstration plant with the capacity to recycle up to 1,5000 tonnes of battery waste per year, and expand the team as the company builds a recycling industry in Australia and establishes a global presence.

Virescent Ventures believes the burgeoning Australian climate tech industry provides investors with one of the most attractive sectors from which to achieve outsized returns and portfolio alpha.

Virescent Ventures’ focus has been on Series A or seed stages (with just a few late stage investments). The Virescent Ventures active investment philosophy can add significant value to founders and teams by helping them grow and scale their solutions.

Kristin Vaughan, Managing Partner of Virescent Ventures, said: “Ben Gust, Blair Pritchard, and I are very proud to have built such a robust and high-performing portfolio after actively investing in climate tech together as Partners for almost six years.

“We are also proud of our heritage with the CEFC and appreciative of the continued support and investment from one of the world’s largest ‘green banks’. It has played an important role in advocating for, and catalysing investment into, climate transition and decarbonisation solutions. Our combined depth of experience and talent in climate tech, combined with the 140+ experts within the CEFC, is an important and unique advantage.

“We are also particularly excited to work towards doubling the size of this portfolio with the support of additional local and global institutional and private investors into our upcoming Fund II. The valuations within our current portfolio remain resilient, with portfolio companies continuing to grow and outperform through difficult market conditions. This validates our investment strategy and belief that climate tech VC is a commercially attractive alternative investment.”

The CEFC has a minority shareholding in Virescent, with CEO Ian Learmonth leading as non-executive director and Investment Committee member.

CEFC CEO Ian Learmonth said: “The climate tech sector has enormous potential to accelerate the transition to net zero. With no single solution to the complex challenge of economy-wide decarbonisation, the diverse range of sectors covered by CEFC climate tech investments will be critical in our race to net zero. Homegrown innovators can also help Australia capitalise on the sustainable economy of the future.

“The Virescent Ventures team has an outstanding track record developing and managing an exciting portfolio of climate tech companies. We look forward to continuing to work with them as they pursue their first close and bring much-needed capital and expertise to the sector.”

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