At the COP28 climate conference, the European Investment Fund (EIF), Europe’s largest venture capital and private equity financier, announced new investments totaling €200 million to enable four private equity funds to back €2 billion of climate action and environmental sustainability investments. This investment will help to reach the European Union’s climate and energy targets and promote regenerative agriculture.
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.
The EIF’s commitments include:
- €40 million to Tikehau Regenerative Agriculture, one of the first large-scale private funds dedicated to regenerative agriculture, and aims at accelerating 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.
- €50 million top-up to 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.
- €60 million to 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 GHG emissions across the most emitting sectors – energy & resources, industry & manufacturing, mobility & logistics, building & infrastructure.
- €50 million commitment and approval of €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.
The signature event was held jointly with a panel discussion hosted by the EIF on the importance of private-public cooperation and its pivotal role in supporting a green transition, showcasing the new commitments alongside ongoing cooperations, such as with Taaleri Energia who was represented at the event by its Managing Director, Kai Rintala.
“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, EIF Chief Executive.
See also: Unveiling COP28: A critical meeting to address climate change
Speaking at the event, Gelsomina Vigliotti, EIF Chair stated that “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.”
“We are excited to enhance our collaboration with EIF in the ongoing fight against climate change. Following the endorsement for our initial decarbonization strategy by EIF two years ago, we are pleased to once again have their support for our inaugural regenerative agriculture initiative. Through these two key pillars, our focus is on investing to reduce the carbon footprint of the economy. Moreover, by supporting transformative changes in agricultural practices, we aim to champion the most significant carbon sink in existence: the soil”, said Pierre Abadie, Group Climate Director at Tikehau Capital.
Taking part in the panel, Jonathan Maxwell, Founder and CEO of Sustainable Development noted that “The Green Energy Solutions Fund (GESF) invests in the development and construction phase of energy-efficient projects. Energy efficiency is the largest, fastest, cheapest, and cleanest source of greenhouse gas emission and energy cost reductions, as well as improvements in energy security. The fund aligns with the EU’s policy principle of ‘Energy Efficiency First’ and we are delighted and proud that EIF is a cornerstone investor.”
“The GET team has been managing cleantech VC investments for more than a decade. With its clear focus on highly scalable business models, the GET team has successfully demonstrated that impact investing can also deliver financial performance. Hybrid hardware and software solutions are the key to overcoming the myth that climate technology is too Capex intensive and cannot be scaled by venture capital” said Martin Kröner, Partner at GET Fund. “As a cornerstone investor, the EIF played a crucial role in the fundraising of the GET Fund. We appreciated this support and the signal sent to the investors with its commitment”, added Isabelle Canu, Partner at GET Fund.
“At SET Ventures, our belief is that technological innovation is not the primary bottleneck in the transition to clean energy. What we feel is needed now are innovative data-driven business models and ideas that spark the adoption of existing technologies at scale. With the support of EIF we are proud to continue providing capital, community and insights to the visionary founders of today, to build the energy landscape of tomorrow”, said Dr Till Stenzel, Partner at SET Ventures.
