Thursday, November 14, 2024

EU commits €150m to infrastructure decarbonisation fund

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The EIF is supporting a White Summit Capital fund that aims to support infrastructure companies across Europe and boost decarbonisation efforts.

The European Investment Fund (EIF) has signed a €150m cornerstone commitment to boost an infrastructure fund focused on decarbonisation.

The fund is being managed by White Summit Capital, an investor and asset management company specialising in real assets and energy transition. The EIF funding will boost its second decarbonisation infrastructure fund – WDIF II.

This fund has a target size of €500m and aims to address the funding gap in the energy transition middle market by supporting infrastructure companies across Europe to scale up their asset base and support their development.

The EIF said its commitment reflects the important contribution WDIF II is expected to make towards advancing EU objectives, in areas such as clean energy transition, tackling the climate crisis and improving the security of energy supply.

The White Summit Capital fund is also backed by the InvestEU programme, which aims to mobilise more than €372bn in additional investment for EU policy priorities between 2021 and 2027.

“In line with our objective of accelerating Europe’s energy transition, we are excited to join forces with White Summit Capital,” said EIF CEO Marjut Falkstedt. “By leveraging the expertise and financial strength of the EIF and with the support of the InvestEU programme, alongside White Summit Capital we aspire to mobilise additional capital, expedite decarbonisation efforts and contribute to building a sustainable future.”

The fund is expected to invest in roughly 10 companies with strong management teams, in the areas of renewables integration, sustainable transport and the decarbonisation of industries – three areas where White Summit Capital claims to have a proven track record.

The fund’s seed asset – a significant stake in Zunder – has already been contributed. Zunder is an EV charging infrastructure company in Spain.

Last month, the EU selected 17 small-scale projects to support under its Innovation Fund, in a bid to reduce carbon emissions. But a report from PwC in November 2023 said the world needs to decarbonise seven times faster than it did in 2022 to limit the rate of global warming.

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