Carbon Removal Fund

Portfolio Manager Zoe Austin discusses a real-life nature-based solution and explains how this asset is making a positive contribution to a low carbon economy.

Managed by a team from across our private markets platform, the Aviva Investors Carbon Removal Fund adopts a multi-solution approach and applies a robust asset allocation process.  

We take a traditional real assets approach to developing nature-based solutions to protect, sustainably manage and restore natural and modified ecosystems in ways that address societal challenges effectively and adaptively. Often projects have blended revenue models, with income from sustainably managed timberland complementing high-integrity, carbon-based nature restoration opportunities.  

The investment strategy targets three key challenges associated with carbon solution funds: scalability, climate risk and longevity.

Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.

For further information on the risks and risk profiles of our funds, please refer to the relevant KIID and Prospectus.

Investment risk: Investment values can fluctuate, and past performance is not indicative of future returns. Investors’ capital is at risk.

Policy and regulatory risks: changes in government policies, regulatory frameworks, and compliance requirements, which can impact project viability, funding, and long-term sustainability.

Delivery and counterparty risks: There are risks of delays or failures in delivering promised carbon removal services and the reliability of partners or stakeholders in fulfilling their contractual obligations.

Climate and physical risks: impacts of extreme weather events, changing climate conditions, and natural disasters, which can disrupt operations, damage projects and infrastructure, and affect the effectiveness of carbon removal processes.

Price and value risks: fluctuations in the market price of carbon credits and the uncertainty of the long-term economic value of the carbon removal project, which can affect project returns. The generation of carbon credits and positive returns from them are not guaranteed.

Technology and methodology risks: uncertainties and potential inaccuracies in the measurement, reporting, and verification processes, which can affect the credibility and effectiveness of the carbon removal outcomes.

Reversal and permanence risks: potential for sequestered carbon to be released back into the atmosphere due to factors like land-use changes, natural disturbances, or project failures.

Illiquidity risk: difficulty of selling an asset quickly if required without significantly impacting its price, which can limit financial flexibility and increase investment risk.

Emerging Markets Risks: Investments in emerging markets carry additional political, legal, and corporate governance risks compared to developed markets.

Investments in natural capital, private and venture capital, and other private market assets incur higher costs and expenses compared to public market assets. These costs are borne by the Fund and disclosed in the Private Placement Memorandum.

This summary highlights key risks but is not exhaustive. Investors should read the Private Placement Memorandum for a complete description of risks and conduct appropriate due diligence before making any investment decisions.

THIS IS A MARKETING COMMUNICATION

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) and is up to date as of the 5th of September 2024. Unless stated otherwise, any views, opinions and expected returns expressed, are those of Aviva Investors and based on Aviva Investors internal forecasts. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested. Past performance is not a guide to future returns.

The information within this document is based on our current understanding of taxation and is not to be construed as investment, legal or tax advice. The basis and rates of tax may change in the future. Some of the information within this document is based upon Aviva Investors estimates at the time of issuance. These should not be relied on by anyone else for the purpose of making investment decisions.  Prospects should obtain and rely on their own examination of the Fund (as defined hereafter), prior to making an investment decision and it is advised that parties engage their own professional advisors. This document should not be taken as a recommendation or offer by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation.

Where relevant, information on our approach to the European Regulation 2019/2088 of the European Parliament and the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (the “SFDR Regulation”) in Luxembourg on 10 March 2021,  including policies and procedures can be found on the following link: https://www.avivainvestors.com/en-gb/capabilities/sustainable-finance-disclosure-regulation/

Aviva Investors RA LUX FCP-RAIF is a Luxembourg special limited partnership under the reserved alternative investment fund (fonds d'investissement alternatif réservé) (the “Fund”) regime within the meaning of the Luxembourg Law of 23 July 2026 (“RAIF Law”). The Fund itself being an alternative investment vehicle, is not regulated by the Luxembourg CSSF or any foreign regulatory authority, while its AIFM is regulated entity under the Luxembourg CSSF. As a consequence, investors will not benefit from the same investment protection regime applicable to regulated Luxembourg collective investment schemes. Units are reserved to institutional investors and well-informed investors who are aware of the risks attaching to an investment in a fund investing in direct or indirect interests in real estate. The Prospectus or Offering Memorandum (as relevant) of Aviva Investors funds are available together with the Report and Accounts free of charge by contacting us at the address below.

Aviva Investors RA LUX FCP-RAIF is structured as an umbrella fund and consists of several, separate compartments each corresponding to a distinct part of the assets and liabilities within the RAIF. The Sub-Fund, Climate Transition Real Asset Fund - Lux EUR is one of such separate compartments.

Aviva Investors Luxembourg, a Luxembourg public limited liability company (société anonyme) governed by and existing under the laws of the Grand Duchy of Luxembourg, having its registered office at 2, rue du Fort Bourbon, L-1249 Luxembourg, Grand Duchy of Luxembourg, and registered with the RCS under number B25708, has been appointed as the AIFM of the Fund. The AIFM is authorised and regulated by the CSSF (firm reference number A00000592).

Issued by Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: 80 Fenchurch Street, London, EC3M 4AE. Authorised and regulated by the Financial Conduct Authority.