Instos eye climate tech startups

Responsible investor Australian Ethical and the Clean Energy Finance Corporation (CEFC) have each committed $15 million into the first close of the new fund curated by Climate Tech Partners (CTP).

CTP is a local climate venture platform deploying capital into decarbonisation technology startups across energy, transport, mining, and industrials.

The climate platform has a pipeline of "high potential" startups at Series A and, aided by deep engagement with corporate partners, the fund will prioritise investing into areas such as gridtech, low carbon fuels, and climate adaptation technologies.

Despite volatility coming from US President Donald Trump's administration, CTP said the re-elected Labor government has embedded certainty in its policy to provide greater guarantees and long-term focus for the cleantech sector.

Globally, China continues to accelerate investments in renewables, electrification, and advanced energy technologies, while Europe remains steadfast in developments toward emissions reduction and green innovation, displaying strong momentum in the space.

Commenting, Australian Ethical chief investment officer Ludovic Theau believes the partnership will better position the organisation to support the net zero economy.

"We're pleased with this opportunity to advance our investment in early-stage climate technology," Theau said.

"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."

CEFC chief executive Ian Learmonth believes the strong background CTP has in venture capital will be fundamental.

"We are confident this team will deliver both environmental and commercial outcomes," Learmonth said.

Meanwhile, CEFC head of growth capital Malcolm Thornton said the investment will speed up the advancement of technology essential to 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," Thornton said.

CTP co-founder Patrick Sieb said the climate tech sector is gaining a lot of momentum.

"With tech readiness, corporate demand, and policy aligning, it's a powerful moment to invest," Sieb said.

"Even in the US, bipartisan backing for energy security and sustainable fuels shows just how durable this opportunity is."

Adding to Sieb's comment, co-founder Tom Kline believes the support of the Australian government sends a "powerful signal" to 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," Kline said.

The BESEN Family Office, Qantas and Airbus were among the contributors to the first close, accumulating to over $50 million in investment.