WE ARE COMMITTED TO SUPPORTING THE EUROPEAN GREEN DEAL
GOAL OF MAKING EUROPE THE FIRST CLIMATE NEUTRAL CONTINENT BY 2050.
WE ARE INCREASING THE SCALE AND SCOPE OF OUR TARGETED GREEN ACTIVITIES
INCREASING OUR INVESTMENT VOLUMES
In recognition of positive impact that both VC backed cleantech innovation and climate and infrastructure projects can bring, we are scaling up our activity in these areas.
We expect to commit at least €2bn by 2025 with an aim to mobilise an additional €8bn for cleantech innovators in sectors such as energy, circularity agtech, mobility and water.
We expect to commit €4-5bn in climate and infrastructure funds over the years in sectors such as renewable energy, power generation and enabling infrastructure, or sustainable transport. We invest in funds that facilitate the creation of new assets on the ground. Our investee funds are therefore typically greenfield funds, and/or finance renovation/refurbishment/retrofit and extensions of existing platforms.
DEVELOPING AND SUPPORTING THE ECOSYSTEM
We have extensive experience in developing equity finance ecosystems across different sectors and regions in Europe. We are putting this know-how to work in the climate tech and environmental sustainability space by acting as an anchor investor for new and emerging teams across different geographies and climate and environmental themes, and in doing so, increasing the number and reach of funds across Europe.
MEASURING AND REWARDING IMPACT
Our climate and environmental investment strategy is based on measuring and rewarding impact. We work closely with our fund managers to define relevant climate and sustainability impact metrics and targets for the companies and founders they back. Those metrics and targets are regularly tracked and form part of the overall assessment of fund performance alongside financial returns. Fund manager remuneration is also linked to their ability to generate impact and demonstrate intentionality, scalability and a positive correlation between positive impact and performance in their investment portfolios.
WE ARE PAVING THE WAY FOR NEW FINANCING SOLUTIONS
We are already working on alternative sources of green financing for SMEs such as investments in environmentally-focused debt funds. Together with the EIB, we’re also helping design the EU regulations concerning equity and debt financing in climate and sustainability. We will be a core implementing partner of InvestEU from 2022 onwards. At least 30% of the InvestEU Programme, in line with the European Green Deal objectives, shall support financing for investments that contribute to EU’s climate objectives. We’ve contributed to the EU Taxonomy, while adapting the regulation to our investment activities.
ALL OF OUR FINANCE ACTIVITIES ARE PARIS ALIGNED
The EIF follows the agreed EIB Group framework for Paris alignment. We have expanded our list of restricted sectors and activities across all our managed mandates and products. Restricted sectors include areas, such as fossil-fuel based energy production, coal mining, oil and natural gas exploration, production, refining, transportation, distribution and storage, as well as energy-intensive and high CO2 emitting sectors and transport vehicles.
NEW PARIS ALIGNMENT OF COUNTERPARTIES FRAMEWORK FROM 2022 ONWARDS
Financial intermediaries such as banks and funds are not direct emitters of CO2 per se and hence not directly responsible for reducing physical and transition climate change risks. They are nonetheless important players in financing the fight against climate change. For this reason, the EIB Group has put in place a framework, which assesses large and significant counterparties’ alignment with the Paris Agreement in terms of climate strategy, policies and practices. The framework will take into account the wide diversity of financial intermediaries in terms of size, resources and more specifically their portfolio’s impact on CO2 emissions. The EIF will contractually require these intermediaries to develop and disclose climate-related information in line with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations.