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Aavishkaar attracts $150-M for carbon credits-focused permanent capital vehicle

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Impact investor Aavishkaar Capital’s permanent capital vehicle, Aavishkaar Carbon, has received soft commitments of USD 150 million from global companies, including oil majors and technology firms.Aavishkaar Carbon was established in 2024 to invest in growing trees on Indian farms to promote carbon sequestration and monetize it through the carbon trade market. The firm is implementing a strategy involving small landowners to increase tree cover and density across 5,000-10,000 acres, with pilot projects underway in West Bengal and Jharkhand. Landowners receive initial compensation through fixed payments, input support, and intercropping income, followed by carbon revenue sharing.The firm adopted a permanent capital vehicle structure for carbon sequestration, moving away from a traditional closed-end fund with a 10-year tenure, to align with the 20-year duration of bio-sequestration projects. This enables holding assets for their full biological and economic lifecycles. Aavishkaar is also incorporating shorter-cycle carbon interventions like biochar and alternative wetting and drying (AWD) in agriculture, which can yield results within two to three years, to diversify its portfolio. Pricing for carbon removal varies, with natural-resource-based bio-sequestration potentially yielding USD 10 per tonne, while technology-led carbon removal can command USD 1,000 per tonne.