The Green Growth Equity Fund (GGEF), India’s climate change fund, has received a $70 million investment from the CDC Group, a UK government-owned development finance firm. Eversource Capital, a joint venture between private equity firm Everstone Group and British Petroleum’s renewable energy platform Lightsource bp, manage the fund.

The portfolio comprises 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. Further, the funds will be used by the GGEF to support the development of ‘green infrastructure’ businesses in India. The company claims to be unlike many other funds in that it uses a ‘platform model.’ This implies the fund creates a firm from the ground up in a field of interest, then expands the platform by acquiring additional companies in the sector.

As per a company statement, the GGEF platform can generate operational economies and scalability by bringing together a number of smaller businesses with comparable business strategies under one roof. In September 2021, the CDC announced its plans to invest up to $1 billion in climate funding to India over the next five years. This commitment will fund climate mitigation projects and businesses and enhance national efforts to align with the Paris Agreement.

REGlobal’s Views: As GGEF is a dedicated climate change investment fund, such funds will be a significant help for India to transition to a low carbon future.