EIB supports €2.5bn investment in climate action projects

The European Investment Bank (EIB) is aiming to mobilise €2.5 billion of investment in climate action and environmental sustainability projects in partnership with five private equity partners.

The money will be spent on meeting the European Union’s climate and energy targets and will come from the European Investment Fund (EIF).

The deal was signed at COP27 in Sharm El-Sheikh (Photo: EIB)

Speaking at the COP27 event, the bank said it was committing €250 million in seed capital in the areas of renewable energy, energy efficiency, the circular economy, blue economy, and water.

The EIF has committed to the following areas:

• €75 million to the SUMA Capital Climate Impact Fund III - An infrastructure fund targeting greenfield energy transition and circular economy projects predominantly in Spain.
• €75 million to the Eiffel Transition Infrastructure Fund - An innovative fund designed to provide equity bridge financing for renewable energy infrastructure assets in Europe.
• €39 million to the Zintinus Fund I - A 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
• €30 million to PureTerra Ventures - A 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.
• €28 million to the Growth Blue Fund I - A private equity fund focusing on the blue economy, sustainable economic activities relating to the oceans. It will mainly invest in Portuguese small and medium companies across all sectors.

The new financing will contribute to the European Green Deal, which aims to make Europe the first climate-neutral continent by 2050, in addition to REPowerEU, the plan to reduce dependence on Russian fossil fuels by investing in clean energy.

Alessandro Tappi, Chief Investment Officer at EIF, said, “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.”