More

    EIF Supports €2.5 Billion Investments Across 5 Sustainable Funds

    Stockholm (NordSIP) – At the COP27 climate conference, the European Investment Fund (EIF), signed investments totalling €247 million to enable five equity funds to back €2.5 billion of climate action investment that helps to deliver the European Union’s climate and energy targets. The investment agreed will enable the fund managers to reach a first close or attain their target fund size and

    The EIF is part of the European Investment Bank Group. As Europe’s largest venture capital and private equity financier, its central mission is to support Europe’s micro, small and medium-sized enterprises (SMEs) by helping them to access finance. These investments are conducted in pursuit of EU objectives.

    The Framework

    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 was supported in these investments also count by the InvestEU programme, known as the European Fund for Strategic Investments (EFSI) between 2015 and 2021. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners who will invest in projects using the EU budget guarantee of €26.2 billion. The entire budgetary guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

    “Contributing to the European Union’s green transition agenda is a top priority for the EIF and the EIB Group. This has become even more important and urgent given the current energy crisis. We are therefore very happy to invest in five equity funds that will make a crucial contribution to the energy transition in a variety of sectors, from water to food and infrastructure. Signing these commitments at COP27 sends a strong market signal that investing in green business models and technologies is possible and vital to our common future,” EIF Chief Investment Officer Alessandro Tappi said.

    These deals were signed at an EIF side event at COP27 about The contribution of European Venture Capital, Private Equity and Infrastructure Funds to the EU Green Deal, which discussed the main impediments to scaling up investment in the energy transition.

    Growth Blue Fund I

    The EIF has agreed to invest €28 million in the Growth Blue Fund I, a private equity fund focusing on the blue economy and sustainable economic activities relating to the oceans. It is managed by Growth Partners Capital and will mainly invest in Portuguese small and medium companies across all sectors.

    “Growth Blue shares the vision of a more sustainable economic model and the decarbonisation of our societies and production methods. We are certain that the ocean will play a critical role in this transition since it is one of the few alternatives to produce protein, energy or new materials to supply an increasing demand boosted by a growing population. We also need to protect the ocean from the impact of world’s current economic model. We believe we can do this by providing both sustainability and returns for our investors,” Miguel Herédia, Manager at Growth Partners Capital said.

    PureTerra Ventures

    Another €30 million will go to PureTerra Ventures, a Dutch water technology early growth fund, which invests in small and medium enterprises across the European Union scaling game-changing technologies to radically alter the usage, conservation and treatment of water.

    “Water is the foundation of life, yet undervalued by most. The overall water cycle is broken and its repair is long overdue,” said Job van Schelven, partner at PureTerra Ventures. “The European Investment Fund subscribes to PureTerra’s ambition: clean water for all. PureTerra’s partners are grateful to InvestEU and the Dutch Future Fund for valuing the necessity of water expertise and entrepreneurial experience for scaling solutions to maximise impact. With the commitment to water, the European Investment Fund is leading the financial markets in recognising the need and the opportunities inherent in water distress.”

    Zintinus Fund I

    The Zintinus Fund I, a German venture capital fund focused on growth stage investments in sustainable food innovation across Europe, in particular alternative proteins, functional food, clean nutrition and food waste reduction, will receive €39 million from the EIF.

    “The transition of the food system is one of the biggest challenges and opportunities of our time. We are fully committed to supporting young companies in this space and helping them on their growth journey. Having the EIF as a partner is a privilege and a great encouragement,” Olaf Koch, partner at Zitinus added.

    SUMA Capital Climate Impact Fund III

    The EU institution will also invest €75 million in the Spain’s SUMA Capital Climate Impact Fund III, an infrastructure fund targeting greenfield energy transition and circular economy projects predominantly in Spain.

    “We are delighted to have the support of the EIF in our third-generation infrastructure impact fund to fight against climate change. We have been developing this activity for the last ten years, with our firm purpose of committing to building the future that we believe in, more inclusive and decarbonised,” Suma Capital Climate Impact Fund III CEO Enrique Tombas commented.

    Eiffel Transition Infrastructure Fund

    Last but not least, the EIF also allocated €75 million to France’s Eiffel Transition Infrastructure Fund, an innovative fund designed to provide equity bridge financing for renewable energy infrastructure assets in Europe.

    “By providing much-needed equity alongside midsized independent renewable energy developers and power producers, the Eiffel Transition Infrastructure fund accelerates the development of new renewable energy capacities, helping Europe achieve energy sovereignty and generating a significant positive impact on greenhouse gas emissions and climate change,” Pierre-Antoine Machelon, Head of Infrastructure at Eiffel, concluded.

     

    Image courtesy of Pixel2013
    Filipe Albuquerque
    Filipe Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

    Latest Posts

    NordSIP Insights Handbook

    What else is new?