London-based Aviva Investors has launched a carbon removal fund which aims to deliver investment returns while supporting long-term net zero targets.
The fund will invest directly in both nature-based and engineered carbon removal solutions.
It has been seeded with an initial commitment from Aviva’s Investment, Wealth and Retirement business.
The fund has been designed to 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, the fund will also invest in assets and projects that can provide measurable co-benefits, such as biodiversity enhancement, species protection and reintroduction, improved water quality, employment and public access.
Daniel McHugh, Chief Investment Officer at Aviva Investors, said: “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.
“We think our Carbon Removal Fund is at the forefront of how asset managers can best-capture these opportunities. 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.”
