Eduardo Mufarej — Photo: Silvia Zamboni/ValorValor | 18 March 2025

Al Gore-backed private equity firm secures funds from Microsoft and CalSTRS

By Camila Souza Ramos, Globo Rural — São Paulo

Private equity firm Just Climate has secured its first round of funding from two major global investors to begin investing in solutions aimed at reducing agricultural emissions. The company, founded by Generation Investment Management—an asset management firm co-founded by Al Gore—and led in Brazil by businessman Eduardo Mufarej, raised $175 million (approximately R$1 billion) from Microsoft’s Climate Innovation Fund and the California State Teachers’ Retirement System (CalSTRS).

Microsoft’s fund joins Just Climate’s new investment vehicle as an institutional investor focused on supporting decarbonization initiatives. Meanwhile, CalSTRS, as a pension fund, brings a longer-term investment profile. “Both have distinct expectations for the strategy, and we’ve managed to balance these interests,” Mr. Mufarej said in an interview with Valor.

Earlier this year, Just Climate made its first investment in biodiversity monitoring company NatureMetrics. The UK-based firm raised $25 million in its Series B funding round in January, with Just Climate serving as the lead investor.

This marked Just Climate’s initial foray into the field of “natural climate solutions” (NCS), an investment area led by Mr. Mufarej. Until then, the firm had focused exclusively on “industrial climate solutions” (ICS).

According to Mr. Mufarej, another NCS investment from the new fund will soon be announced, with at least one more expected by year-end.

Despite its climate focus, Just Climate approaches investments as a conventional private equity firm rather than a concessional investor—meaning it does not assume higher risks or accept lower returns in pursuit of sustainability goals. “Our vision is for consistent private equity returns,” Mr. Mufarej noted.

The fund is not interested in early-stage ventures. “We tend to favor companies that already have market presence and established products and are seeking capital for growth,” Mr. Mufarej said.

NatureMetrics, for example, was founded a decade ago by scientists providing biodiversity impact monitoring solutions for businesses, with its latest funding round aimed at accelerating growth.

Just Climate also steers clear of investments reliant on “green premiums,” such as carbon credits. “We focus on efficiency and economic benefits. We don’t believe the market is currently ready to adopt solutions based on a green premium,” Mr. Mufarej noted.

As a climate investor, the new Just Climate fund intends to prioritize solutions addressing land-use change—the primary source of greenhouse gas emissions in agriculture.

Globally, land-use changes account for one-third of emissions from agricultural activities. However, Mr. Mufarej pointed out that “only a very small portion of climate funds” is directed toward addressing this issue. In this regard, the fund is particularly open to investments in Brazil, Australia, and the United States.

Beyond agriculture, the fund is also considering investments in other sectors. Just Climate has structured its investment focus into four key areas: food systems, ecosystem restoration, water and waste management, and services for the transition to a low-carbon economy.

Mr. Mufarej sees strong investment potential in Brazil, particularly in water and waste management, as the country’s agricultural sector generates large volumes of organic waste—such as biomass—that could be harnessed for energy production. “Another promising area is exploring how to expand regenerative agricultural practices in Brazil and how to finance them,” he said.