- 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 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.
Kris Peeters, vice president of the European Investment Bank (EIB), and Raj Paj, founder of the global sustainability private equity firm GEF Capital Partners, announced a $40 million commitment to the new GEF South Asia Growth Fund III in a meeting in Mumbai. The new growth equity fund will accelerate business investment in India and Southeast Asia to address climate action and environmental sustainability.
The fund, which has a target size of $300 million, focuses on investments in India, with up to 10% allocated to other countries in South and Southeast Asia. The fund focuses on environmental and social impact and promotes the achievement of the SDGs, with a particular emphasis on limiting climate change (SDG 13). The EIB contributed more than $25 million to its predecessor climate fund, the GEF South Asia Growth Fund II (2019), which catalysed and deployed $200 million.
“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.”
Kris Peeters, EIB Vice-President