ArcelorMittal, the world’s largest steel manufacturer, has announced the creation of two new funds: a cleantech venture capital fund which will initially invest $20 million in Miasole and a €100 million ($157 million) carbon fund.

The Luxembourg-based multinational will work with several leading VC firms, including Khosla Ventures, KPCB and Bessemer Venture Partners, to find promising new startups and technologies for its cleantech fund to invest in. As per its business orientation, it will primarily seek out firms which have relevance to the steel industry. The fund will be managed by a team from ArcelorMittal Flat Carbon Americas (FCA).

Miasole, a thin-film solar cell maker and the recent beneficiary of a massive $200 million funding round (giving it a valuation of $1.2 billion), will receive the fund’s first $20 million investment. The Santa Clara, Calif.-based firm, which is also backed by ArcelorMittal’s partners and a number of other VCs, such as Vantage Point Venture Partners and Garage Technology Ventures, manufactures solar cells using CIGS (Copper Indium Gallium Selenium) technology.

ArcelorMittal’s carbon fund, which has an initial $157 million on hand, will invest in renewable energy, energy efficiency and methane capture Clean Development Mechanism (CDM) and Joint Implementation projects. These projects, administered under the Kyoto Protocol, will earn the company carbon credits that it will use to comply with EU emissions regulations.