GCF Sanctions $137 Mn FMO Investment in India’s Green Growth Equity Fund

The Board of the Green Climate Fund (GCF) has approved Dutch development bank FMO’s proposal to accelerate private and public sector investment in India’s green infrastructure projects.

Through the Green Growth Equity Fund (GGEF), managed by EverSource Capital (which is also the Executing Entity (EE) of the approved GCF commitment), the Dutch development bank will invest USD 137 million in the energy value chain, water, waste and transport sectors that promote low carbon and climate-resilient initiatives in line with India’s climate objectives and Sustainable Development Goals (SDGs).

India faces major climate change challenges largely due to greenhouse gas (GHG) emission-induced warming. The country faces increasingly extreme weather events and natural hazards, putting pressure on critical natural resources such as water, while damaging infrastructure and threatening livelihoods of its population. There is a clear need for far-reaching mitigation and adaptation measures, since GHG emissions in India are the third-largest in the world, contributing to 7 per cent of global emissions and temperature rise.

EverSource Capital managed GGEF targets raising equity capital up to USD 940 million for India’s green infrastructure sectors such as renewable energy, transport, resource efficiency and energy services.

Commenting on the approval received, Dhanpal Jhaveri, CEO of EverSource Capital, said that “we are delighted to receive GCF Board approval for an investment in GGEF. This is the largest single country amount approved by GCF ever for a private sector equity fund focused on climate mitigation. This investment commitment strengthens our resolve and ability to work towards supporting India’s climate objectives and Sustainable Development Goals along with creating impact and value in India’s clean energy ecosystem.”