Climate Investment celebrates five years of low-cost impact delivery

20 October 2022

Climate Investment

  • OGCI Climate Investment’s strategy is designed to accelerate industrial decarbonization
  • The “climate-first” investment firm’s highly differentiated platform stands out within a fast-growing impact investment ecosystem
  • Its focus on greenhouse gas (GHG) intensive sectors and a dedicated search for GHG impact has yielded unique investment insights and impact results

OGCI Climate Investment (CI), a $1bn+ independent decarbonization investor, is celebrating its fifth anniversary this year.

Since inception in 2017, CI’s portfolio of 29 cutting-edge innovations has delivered over 30 million tons of GHG emissions reduction, cost-effectively. Indeed, over 95% of the cumulative realized impact to date is economic at current commodity prices without a price on carbon, illustrating the cost-effectiveness of CI’s portfolio solutions.

CI invests in technologies and projects specifically aimed at decarbonizing those sectors within energy, industry, the built environment and transportation that account for the majority of GHG emissions but have historically attracted low capital investment for decarbonization. We focus on solutions that deliver near-term GHG impact in three areas: reducing methane, reducing carbon dioxide emissions and recycling or storing carbon dioxide.

CI deploys a cross-sector collaboration model to drive near-term impact. Our ongoing partnership with OGCI member companies and the wider heavy industrial ecosystem allows CI to identify opportunity gaps to drive innovation and adoption of our low-cost solutions among customers to enable achievement of their net-zero goals and operational objectives.

Our portfolio companies provide low-cost solutions to difficult decarbonization challenges, allowing their clients to maximize opportunities from the energy transition.

Data will underpin decarbonization success

CI has engaged proactively, over three years, to develop objective metrics which guide its investment decisions and transparently measure portfolio outcomes. In 2022, CI proudly published its inaugural Impact Report. This confirmed that its portfolio of investments avoided, reduced, recycled or stored 30 million tons of CO2 equivalent (MtCO2e) of GHG emissions between 2019-2021. The firm has also proactively driven an investor-led open platform, Project Frame, to develop a common GHG impact estimation framework where 80 investment funds are working together to agree on common standards.

Pratima Rangarajan, CEO of OGCI Climate Investment, said: “I am immensely proud of CI’s progress. We understand the complex needs of GHG-intensive heavy industries and invest in the technical solutions required to lower the cost of their decarbonization. For impact to be delivered at the scale and speed required, it is imperative that investors, innovators, the private and public sectors collectively exchange ideas and collaborate to drive action. Our progress shows that lowering the cost of decarbonization is not only possible, but is a reality today. I congratulate all our innovators on their success thus far and look forward to working alongside them to deliver continued results.”

The CI team has more than 60 professionals with deep experience in investment, technical and operational environments within heavy industry, delivering impact-oriented innovations throughout their life cycle. Through partnerships with OGCI members alone, CI has facilitated nearly 90 deployments of its portfolio companies’ decarbonization technologies, enabling those companies to secure commercial contracts with a wide group of customers.

About OGCI Climate Investment

OGCI Climate Investment was formed by the Oil & Gas Climate Initiative, established by 12 oil & gas majors that account for around 30% of global operated production. OGCI aims to lead the industry’s response to climate change through action and independently managed investments.

Climate Investment is a $1bn+ decarbonization investor. We seek to accelerate GHG reduction at scale by working closely with OGCI members, governments, customers and co-investors to maximize the global implementation of low-carbon solutions and impact.  We provide capital across the business lifecycle from the catalytic phase of technology and commercial validation through to scaling our investments’ sector and geographic coverage. We have invested in 29 technologies and projects since 2017.

Among our investment activities, we manage our Catalyst Fund I, and we are an investor in China Climate Investment. Both funds invest in solutions to decarbonize under-invested GHG-intensive sectors within energy, industry, built environments/buildings and transportation. Climate Investment targets solutions that deliver near-term GHG impact in three areas: reducing methane, reducing carbon dioxide emissions and recycling or storing carbon dioxide.