India: FMO to invest $137m in Green Growth Equity Fund

Photo: Pixabay

Dutch development bank FMO will invest $137 million in Green Growth Equity Fund (GGEF), managed by EverSource Capital, that invests in India’ green energy space such as clean energy, transportation, resource efficiency and energy services.

GGEF targets raising equity capital up of $940 million and has National Investments and Infrastructure Fund (NIIF) of India and the UK government’s Department for International Development as anchor investors. Earlier BP Plc announced a $70 million investment in GGEF

“The Board of the Green Climate Fund (GCF) has approved Dutch development bank FMO’s proposal to accelerate private and public sector investment in India’s green infrastructure projects,” FMO and EverSource Capital said in a joint statement on Friday.

With a $8 billion portfolio, GCF is the world’s largest dedicated climate fund.

EverSource Capital, an equal joint venture between private equity firm Everstone Capital and global solar project developer Lightsource BP has invested in Radiance Renewables, a distributed renewable energy platform. It develops, owns and operates assets for residential, commercial and industrial customers and has a 1.5 gigawatt (GW) operating portfolio target in four years.

“The total emission reduction expected from the equity investment of the programme is the equivalent of 166 million tons of CO2, while treating and generating an additional 5,700 million cubic meters of water from alternative resources for use by households, farmers and businesses,” the statement said.

India’s green energy space has been witnessing significant traction, with a global shift to green energy to address growing environmental concerns.

“Through the Green Growth Equity Fund (GGEF), managed by EverSource Capital (which is also the Executing Entity (EE) of the approved GCF commitment), the Dutch development bank will invest USD 137 million in the energy value chain, water, waste and transport sectors that promote low carbon and climate-resilient initiatives in line with India’s climate objectives and Sustainable Development Goals. The project is FMO’s second collaboration with the GCF, following the USD 100 million that the GCF invested in Climate Investor One in 2019,” the statement added.

Green finance will be among the priority themes at the 26th session of the Conference of the Parties (COP 26) to the United Nations Framework Convention on Climate Change later this year in Glasgow. An investment of ₹4.7 trillion has been made in India’s renewable energy space in the last six years, with an expected ₹1 trillion investment opportunity annually till 2030.

“The total investment needs to ensure low-carbon and climate-resilient pathways for India is estimated at USD 2.5 trillion over 2016-2030,” the statement said.

India is running the world’s largest clean energy programme to achieve 175 GW of renewable capacity, to help reduce its carbon footprint by 33-35% from the 2005 levels, as part of global climate change transition commitments adopted by 195 countries in Paris in 2015. India currently has an installed renewable energy capacity of 89.63GW, with 49.59GW capacity under execution.

This article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.