The Microsoft Climate Innovation Fund is a $1 billion investment initiative launched by Microsoft in 2020 and based in Redmond, United States. It seeks to accelerate the development and deployment of new environmental technologies by providing equity and debt capital to emerging ventures. The fund supports projects with the potential for measurable impact on carbon, water and waste management and ecosystem protection while contributing to a more sustainable future. Its model links investment decisions with procurement needs tied to Microsoft’s 2030 environmental goals.
Investment activity focuses on direct carbon removal, digital optimization of energy and industrial operations, advanced energy systems, industrial materials, circular economy approaches, water management technologies, sustainable agriculture and nature-based markets. Investors target companies with early commercial traction that require capital to scale and offer measurable benefits. The fund provides project financing and participates in minority equity rounds without leading funding rounds or taking majority stakes. It does not offer grants or donations or invest in publicly traded companies. Since 2020, it has committed nearly $800 million to over 60 ventures.
For clean technology, the fund has backed companies such as Electric Hydrogen, Boston Metal, CarbonCure, Climeworks, Heirloom and Twelve, which focus on low-carbon materials and carbon capture. It also supports energy storage through investments in Group14 Technologies, which develops advanced silicon battery materials, Redwood Materials, a battery materials recycling firm, and Cyclic Materials, which recovers critical elements for battery production. This portfolio demonstrates a commitment to solutions that reduce emissions and enhance resource efficiency across multiple sectors.
