Climate Insider Brief:
- Helios Investment Partners has raised an initial $200 million for the Helios Climate, Energy Access, and Resilience (CLEAR) Fund, aiming to reach a total of $400 million, making it the largest climate fund dedicated to Africa.
- The CLEAR Fund will invest in low-carbon energy, climate-smart agriculture, climate-friendly mobility, recycling, and digital and financial climate enablers.
- It has significant backing from UK and European institutions, including the Dutch development bank, targeting mid-sized African companies to reduce carbon emissions and enhance climate resilience.
PRESS RELEASE – July 31, 2024 – Helios Investment Partners has successfully raised an initial $200 million for climate mitigation and adaptation projects in Africa, supported by Britain’s development finance institution, the European Investment Bank, and other climate-focused investors. This significant milestone marks the launch of the Helios Climate, Energy Access, and Resilience (CLEAR) Fund, which aims to secure a total of $400 million, making it the largest climate fund dedicated to Africa.
In addition to the substantial backing from the UK and European institutions, the Dutch development bank has also committed to the CLEAR Fund. The fund will focus on investments in low-carbon energy, climate-smart agriculture and food systems, climate-friendly mobility and logistics, recycling and resource efficiency, and digital and financial climate enablers.
Anneliese Dodds, UK Minister for Development, emphasized the importance of this initiative, stating, “The government is determined to restore the UK’s reputation as a world leader on climate. We need to act now to avoid further environmental devastation that will fuel illegal migration, conflict, and famine across the world.” She highlighted the unique nature of the UK-supported CLEAR Fund, which is the first of its kind to invest in mid-sized African companies that aim to reduce and avoid carbon emissions, thereby helping communities become more resilient and adaptable to the climate crisis.
Research commissioned by the UK’s Mobilising Institutional Capital Through Listed Product Structure programme indicates a significant investment opportunity in sub-Saharan Africa’s renewable energy market, estimated at $193 billion by 2031. Despite this potential, the International Renewable Energy Agency reports that Africa currently attracts only 3% of global energy investment, underscoring the need for targeted financial support.
Christopher Chijiutomi, managing director and head of Africa at British International Investment (BII), stated, “As the UK’s development finance institution, this investment reinforces BII’s commitment to supporting Africa’s green transition.” Gilles Vaes, CEO of InfraCo Africa, also an investor in the fund, called this initiative “a watershed moment for African growth businesses – and the associated infrastructure – seeking to address the climate crisis.”
The CLEAR Fund promises to unlock much-needed access to finance and exit routes for climate entrepreneurs, offering investors the assurance that their investments will not only yield expected growth but also contribute to global efforts to combat climate change. This landmark initiative is poised to play a critical role in advancing Africa’s sustainable development and resilience in the face of the global climate crisis.
SOURCE: Reuters
