EIB Invests $40 Million Across India and South Asia for Climate Action and Environmental Impact Fund
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- The EIB is set to back $300 million of climate action investment by an Indian fund manager through the new GEF South Asia Growth Fund III.
- This new investment follows the success of the $200 million in business financing provided by predecessor GEF South Asia Growth Fund II.
- GEF South Asia Growth Fund III focuses on the clean energy supply chain, energy efficiency technologies and services, the efficient use of water resources and environmental products and services.
- The GEF South Asia Growth Fund III is expected to have a significant impact on gender equality by accelerating female entrepreneurship in climate finance in India.
Meeting in Mumbai, European Investment Bank (EIB) Vice-President Kris Peeters and founder of global sustainability private equity firm GEF Capital Partners Raj Paj formally announced a $40 million commitment to the new GEF South Asia Growth Fund III. The new growth equity fund will accelerate business investment to address climate action and environmental sustainability across India and southeast Asia.
See related article: EIB Backs Green Hydrogen Deployment and Joins India Hydrogen Alliance
EIB Vice-President Kris Peeters said: “The EIB, the EU climate bank, confirms its support to India in delivering its commitments under the Paris Climate Agreement, creating a partnership on climate action that benefits India, the European Union and the entire world. As part of this commitment, the EIB is helping to catalyse over $500 million of growth capital investing into climate companies in India through our current and past partnerships with GEF Capital. This new operation is also expected to have a significant impact on gender equality in climate finance in India. The EIB is committed to supporting further investment in gender-smart climate finance, in India and elsewhere.”
With a target size of $300 million, the fund targets investments in India, with up to 10% in other countries in the south and southeast Asia regions. The fund focuses on environmental and social impact and promotes the achievement of the sustainable development goals (SDGs), with a particular focus on limiting climate change (SDG 13). The EIB invested over $25 million in its predecessor climate fund — the GEF South Asia Growth Fund II (2019) — that helped to catalyse and deploy $200 million.