EverSource Capital announced the financial closure of India’s largest climate impact fund, the Green Growth Equity Fund (GGEF), at $741 million.
The GGEF is now one of the largest single-country funds focused on climate change, mitigation, and adaptation in emerging markets.
The company was established with anchor investment from India’s National Investment and Infrastructure Fund (NIIF) and Foreign, Commonwealth & Development Office, Government of the United Kingdom.
The funds are invested in combating climate change focused on energy decarbonization and resource efficiency while generating superior investment returns. It supports and builds innovative, digitally empowered, and scalable climate-positive businesses and platforms. Investments are made in renewable energy technologies like energy efficiency, electric mobility, resource conservation, waste and water management, and associated value chains.
The company said its strategy is in line with India’s pledge to develop 500 GW of non-fossil fuel energy capacity by 2030. Its approach also aligns to key national priority projects, including the National Solar Mission, the Swachh Bharat Abhiyan, the National Mission for Clean Ganga, Faster Adoption and Manufacturing of Hybrid and Electric Vehicles, and Sustainable Alternative Towards Affordable Transportation for domestic bio-compressed natural gas or renewable natural gas.
Beit Capital Advisors acted as a financial advisor of EverSource Capital, and Kirkland & Ellis, Withers KhattarWong, and Nishit Desai Associates acted as legal counsels.
Dhanpal Jhaveri, Chief Executive Officer of EverSource Capital, said, “EverSource aims to be a key catalyst for bringing climate finance into India, as our investments have the potential of generating over 450 billion kWh of clean energy, avoiding over 450 million tons of carbon dioxide emissions, creating tens of thousands of jobs and adding over $5 billion to the Indian economy over the next decade. We are committed to bringing positive climate impact while generating strong investment returns and performance.”
In October 2021, CDC Group, a U.K. government-owned development finance institution, invested $70 million in the Green Growth Equity Fund.
Mercom had earlier reported that EverSource Capital and NIIF announced their partnership with Ayana Renewable Power which could see investment to the tune of $330 million (₹24.45 billion) cumulatively by all three partners.
According to Mercom Capital Group’s recently released ‘Annual and Q4 2021 Solar Funding and M&A Report’, approximately $30.9 billion was raised by 20 newly established funds that focus on renewable energy investments in 2021, compared to $18.1 billion raised in 2020.