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EIF mobilizes EUR billion to drive energy efficiency and climate action investments

EIF mobilizes EUR billion to drive energy efficiency and climate action investments
At the COP28 climate conference, the European Investment Fund (EIF), Europe’s largest venture capital and private equity financier, announced new investments totaling EUR 200 million to enable four private equity funds to back EUR 2 billion of climate action and environmental sustainability investments.

At COP28 in Dubai, United Arab Emirates (UAE), the European Investment Fund (EIF) announced EUR 200 million of new commitments to four equity funds investing a total of EUR 2 billion to drive climate action and innovative technology developments across Europe.

According to a statement, this investment will help to reach the European Union’s climate and energy targets and promote regenerative agriculture.

These investments are of paramount importance in the fight against climate change. COP28 provides a crucial platform for global collaboration, and at the EIF, we are committed to leveraging our resources and expertise to drive climate action and technology developments. Through these investments, we aim to make a meaningful contribution to the EU’s ambitious climate goals, progressing on many levels, from regenerative agriculture to renewable energy, innovative technologies, and the transition to clean energy, said Marjut Falkstedt, Chief Executive, EIF.

The European Investment Fund (EIF) is part of the European Investment Bank Group, and its central mission is to support Europe’s micro, small, and medium-sized enterprises (SMEs) by helping them access finance.

The EIF designs and develops venture and growth capital, guarantees, and microfinance instruments that specifically target this market segment.

In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

Aligned with European Green Deal and REPowerEU

The announced funds will focus on promoting regenerative agriculture, investing in renewable energy infrastructure, and developing innovative technologies supporting the energy and green transition.

The financing is backed amongst others by European Investment Bank (EIB) resources and EIF’s Sustainable Development Umbrella Fund (SDUF) Greentech Fund which catalyzes capital from private institutional investors.

The new financing contributes to the European Green Deal, the roadmap for Europe to become the first climate-neutral continent by 2050, and REPowerEU, the plan to rapidly reduce dependence on Russian fossil fuels and fast forward the green transition.

The EIF contributions also mobilize resources from institutional investors entrusted to the EIF under the SDUF Greentech compartment.

Private equity and venture capital play a vital role in mobilizing capital and expertise to support the transition to a low-carbon economy. By investing in climate-focused funds, the EIF demonstrates its commitment to unlocking the potential of these sectors in driving sustainable innovation and transformative change. These investments align with our mission to promote responsible investment practices and contribute to a greener future, said Gelsomina Vigliotti, EIF Chair.

The EIF’s commitments include:

  • EUR 40 million to Tikehau Regenerative Agriculture, one of the first large-scale private funds dedicated to regenerative agriculture that aims to accelerate the paradigm shift towards a resilient agri-food sector by investing in businesses active through the entire value chain that promotes regenerative practices at scale. Tikehau Capital is a global alternative asset management group.
  • A EUR 50 million top-up to Sustainable Development Capital LLP (SDCL) SDCL Green Energy Solutions Fund, an infrastructure fund primarily focusing on investing in greenfield energy efficiency and decentralized renewable energy generation assets, across three key segments: energy efficiency, on-site generation, and renewable solutions. SDCL is a global specialist investor in energy efficiency projects.
  • EUR 60 million to Green European Tech (GET) Fund I, a fund managed by MVP III Management aiming to scale European climate technology start-ups with a high potential to significantly reduce greenhouse gas (GHG) emissions across the most emitting sectors – energy & resources, industry & manufacturing, mobility & logistics, building & infrastructure. GET is a venture capital fund fostering the growth of European sustainable tech startups.
  • A EUR 50 million commitment and approval of a EUR 10 million top-up to SET Fund IV, a pan-European fund managed by SET Ventures, targeting digital technologies for a carbon-free energy system.

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