Aviva Investors has launched a Carbon Removal fund to provide investors with access to carbon removal solutions.
The fund will invest in both nature-based and engineered carbon removal solutions that provide high integrity carbon removal credits as part of a blended portfolio. It is classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR) framework.
It will provide access to investments such as afforestation and restoration projects across areas of peatland and mangroves, as well as commercial forestry, venture capital and private equity-based nature tech, and alternative carbon removal companies. Beyond carbon removal credits and low-carbon investments, it will also seek assets and projects that provide co-benefits, such as biodiversity enhancement, species protection and reintroduction, improved water quality, employment and public access.
Further, it will have a global remit, allowing it to invest across both temperate and tropical climates. This is part of Aviva Investors’ aim to address the climate investment adaptation gap that exists between developed and emerging markets around the world.
The fund launch coincides with the publication of the research paper – Navigating nature: Opportunities for the investor of tomorrow – which outlines why nature-related risks and opportunities should matter to investors, how investors can identify and engage with nature-related issues, and what actions Aviva Investors is taking to deliver investment outcomes whilst supporting global nature goals.
Daniel McHugh, chief investment officer at Aviva Investors, said: “We are incredibly pleased to bring this fund to market, which serves as another example of our ability to match investment expertise with product innovation.
“Investors have been consistent in calling for investment strategies that can deliver long-term performance whilst also helping them to align with net zero ambitions. This is a fund designed for investors with ambitious decarbonisation pathways in place and that are looking for ways to hedge against exposure to carbon pricing.”
