CDC Group has invested in the Green Growth Equity Fund, the nation’s first dedicated climate change fund.
CDC Group, the UK’s official development finance body and impact investor, has invested $70 million in the Green Growth Equity Fund (GGEF), the country’s first dedicated climate change fund.
The fund is managed by Eversource Capital, a joint venture between private equity fund Everstone Group and Lightsource BP, British Petroleum’s renewable energy platform.
GGEF already has strong climate credentials and has several investments in its portfolio such as Radiance, a renewable energy solution for commercial and industrial customers; e-mobility platform Greencell Mobility; utility-scale renewable energy platform Ayana; Integrated waste management platform Everenviro; and wastewater management platform Kathari, CDC Group said in a statement Friday.
Along with CDC investments, the Green Fund will fund the development of 6-8 green infrastructure companies here.
GGEF differs from many funds because it follows a platform model, meaning it sets up a firm from scratch in an interested sector and then grows the platform by making acquisitions.
By consolidating multiple smaller companies with similar business models under one roof, the platform can achieve both operational efficiencies and scale, which is critical to improving profitability and building size to attract a buyer.
GGEF, as a leader in green infrastructure in the country, is expected to play a catalytic effect by proving that investors can earn returns while contributing directly to climate objectives.
“This investment in GGEF will strengthen our role in India as a staunch advocate of the country’s low-carbon future,” said Srini Nagarajan, CDC Group’s Managing Director and Head of Asia.
Dhanpal Jhaveri, Chief Executive, Eversource Capital and Vice President, Everstone Group, said, “His group is committed to making a positive climate impact by catalysing and investing capital for high growth platforms and businesses.
Last month, the CDC announced its ambition to invest up to $1 billion in climate funding to India over the next five years ending FY26. This commitment will fund climate mitigation projects and businesses here and enhance national efforts to align with the Paris Agreement.
Over the past four years, CDC has invested more than $1 billion in climate finance across Africa and South Asia.
CDC already has a $2 billion portfolio in the country.
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