* Backers include TD Bank, Church Pension

* To focus on areas including clean energy, transport

* Seeks capital light businesses to scale quickly

Jan 22 (Reuters) - Toronto-based ArcTern Ventures said on Monday it has raised $335 million from TD Bank and other institutions for a climate technology fund aiming to back renewable energy, clean transport and other industries addressing climate change.

Other investors to back the fund - ArcTern's third - alongside the Canadian lender include the Church Pension and Swiss lender Credit Suisse, now part of UBS, it added.

Climate tech, which includes companies creating new ways to reduce greenhouse gases, saw demand to invest fall 40% in the 12 months to September, consultants PwC calculated, although this was better than the broader venture capital industry, which was down 50%.

Despite the tough backdrop, ArcTern Managing Partner Murray McCaig said he expected large institutions with substantial cash on hand to move into climate tech over the next few years as public opinion on the need for climate action spikes.

(Reporting by Peter Henderson and Simon Jessop; editing by Jason Neely)