The India Energy Transition Fund, backed by the Edelweiss Group, has secured $60 million in fresh capital from the European Investment Bank (EIB), a global development finance bank. This investment is part of the fund’s efforts to scale its investments in climate action and environmental sustainability domains, including renewable energy, energy efficiency, transmission, battery storage, and electric vehicles. The fund, which is registered in GIFT City, has a target corpus of $300 million and aims to make equity and quasi-equity investments in greenfield infrastructure projects and growth-stage companies in India.
The EIB’s investment is a significant milestone for the fund, which was set up in December 2024 by Edelweiss Group’s alternative investment arm, EAAA India Alternatives Ltd. The EIB is the long-term lending institution of the European Union, and its investment in the India Energy Transition Fund is part of its efforts to pursue EU policy objectives. The EIB’s specialized arm, EIB Global, aims to mobilize €100 billion in investments by the end of 2027, representing around one-third of the overall target of the EU initiative.
The partnership between the India Energy Transition Fund and the EIB is expected to have a positive impact on India’s energy sector, particularly in the areas of renewable energy and energy efficiency. The investment is also expected to contribute to the EU’s climate action goals and help reduce energy prices for households. According to Nicola Beer, vice-president of the EIB, the initiative demonstrates the EIB’s commitment to delivering real climate action and improving conditions for households.
The Edelweiss Group’s alternative investment arm, EAAA India Alternatives Ltd, manages over $7 billion in assets and has a strong track record of investing in alternative assets. The India Energy Transition Fund is one of the firm’s key initiatives, and the investment from the EIB is expected to help the fund achieve its target corpus and invest in a range of climate-friendly projects and companies in India. Overall, the partnership between the India Energy Transition Fund and the EIB is a significant development in the Indian energy sector and is expected to have a positive impact on the country’s transition to a more sustainable and environmentally friendly energy mix.