India: Proparco and GEF Capital (South Asia Growth Fund) support companies' efforts to tackle climate change
published on 17 July 2023
Paris, France, July 17, 2023 – Aligning with France’s climate change agenda, Proparco is contributing to finance mitigation and adaptation measures in India via a USD 30m investment in the GEF Capital’s South Asia Growth Fund III (SAGF III). After the success of the second South Asian Growth Fund, Proparco is renewing its support to a top player of the private equity sector in India, known for its ESG commitments, strong track record and recognized expertise.
President Macron welcome India’s Prime Minister Narendra Modi in Paris as the guest of honor at France’s annual Bastille Day, highlighting the close relationship between France and India. The visit comes as France and India have built outstanding strategic partnership since 1998 especially in the cooperation in the Indo-Pacific, and climate, environment and biodiversity domains.
On this occasion, a new partnership between Proparco and GEF Capital took place in order to support the South Asia Growth Fund III with an investment of USD 30 million. This new fund will continue to be very active in the Indian climate investment space and will focus on all the sectors with a clear climate positive impacts.
GEF Capital Partners was formed in March 2018 following the completion of a collaborative spinout from Global Environment Fund, an early pioneer in global sustainability and environmental investing. Today, the investment manager focuses on investments that promote resource efficiency and contribute to building a more sustainable future. These include operating companies that enable clean energy or improve energy efficiency, that are reducing the amount of waste we generate or water we use, that build products using fewer or more efficient materials, or that take action to improve the quality and conservation of our land. GEF Capital currently manages three programs in South Asia, Latin America and the USA.
The project is aligned with both Proparco‘s climate mandate and France’s global agenda on climate change with 100% of co-benefiting climate investments and 100% alignment with the Paris agreement. The SAGF III will promote climate adaptation and mitigation measures in several sectors: water, energy efficiency, renewable energy and value chain, AgriTech, electric vehicles, circular economy, climate tech/digital solutions and sustainable materials/green buildings.
Moreover, SAGF III qualifies to the 2X challenge on gender equality.
For Diane Jegam, Proparco’s Regional Director for South Asia: "France, via Proparco, is very proud to promote its agenda on climate change by investing in South Asia Growth Fund III, a pioneer and best-in-class Climate fund. The strategy of GEF Capital, our long term strategic partners, will support India’s ambitious targets to reduce the emission intensity.”
