COP27: EU signs Eur247 million of green transition commitments

The European Investment Fund has signed climate funding commitments totaling Eur247 million ($254 million) at the UN Climate Conference in Sharm El-Sheikh, Egypt, the European Commission said Nov. 11.

All the funds are from the InvestEU program, which taps into private and public finance to support EU policies, such as the European Green Deal, aimed at net zero climate emissions by 2050.

"At the COP27 climate conference, the European Investment Fund (EIF), Europe's largest venture capital and private equity financier, signed investments totaling Eur247 million to enable five equity funds to back Eur2.5 billion of climate action investment that helps to deliver the European Union's climate and energy targets," the EC said.

Of the total, Eur75 million has been allocated to the Eiffel Transition Infrastructure Fund to provide equity bridge financing for renewable energy infrastructure assets in Europe.

Another Eur75 million goes to Suma Capital Climate Impact Fund III to support renewables, energy efficiency, smart mobility, waste and water management projects.

Some Eur39 million, meanwhile goes to the Zintinus Fund I, focused on sustainable food innovation across Europe, and Eur30 million goes to the Dutch PureTerra Ventures I fund to support technologies improving the use, conservation and treatment of water.

Finally, the Growth Blue Fund I is to receive Eur28 million to support sustainable economic activities at sea, with a focus on Portugal.

In S&P Global Commodity Insights' latest European electricity long-term forecast, installed wind and solar capacity are set to increase by 301% and 408% respectively between 2022 and 2050 under a base case, reflecting the heightened ambition arising from the REPowerEU program.

By 2050 wind and solar would account for a combined 70% of electricity demand, the June 2022 report said, wind growing to 722 GW and solar 879 GW installed.