The State-owned Ireland Strategic Investment Fund (Isif) is pledging more than €160 million to green technology businesses as it plans to double its support for climate action enterprises to €2 billion.
The fund, which operates under the umbrella of the National Treasury Management Agency, aims to back the State’s climate goals by investing in projects that cut greenhouse gas emissions, boost renewable energy and capture carbon from the atmosphere.
The Isif said on Tuesday that it has earmarked €1 billion to back such projects in a second climate action fund, which it plans to allocate over the next four years.
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It committed the €1 billion pledged in the first such fund two years ahead of schedule. The second venture will double the State investor’s backing for climate-action oriented businesses to €2 billion.
The Isif has pledged €161 million from the second climate action programme across three specialist investment funds whose aim is to back businesses that develop technology that cuts carbon dioxide output and boosts green energy.
Industries that it will support include renewable power, energy storage, sustainable fuel, green hydrogen, and carbon capture and storage.
The Irish fund is committing €75 million to the Hitecvision New Energy Fund 2, which will back projects in Europe that involve renewable power, boosting electricity use and sustainable fuels, such as biomethane.
It will advance €58 million to the L&G NTR Clean Power (Europe) Fund, which invests in green energy infrastructure intended to advance Europe’s carbon reduction and energy security plans.
L&G NTR Clean Power backs projects using established technology, including wind energy, solar power and energy storage.
The Isif will pledge €28 million to AP Ventures Fund III, focused on developing green hydrogen and carbon capture technology.
Minister for Finance Paschal Donohoe welcomed the news.
“Having exceeded its previous €1 billion climate investment programme target two years ahead of schedule, I strongly support [the] Isif’s recently announced ambition to bring its total climate investments to €2 billion over the next four years,” he said.
Ireland Strategic Investment Fund director Nick Ashmore noted that the announcement would get its new climate investment programme off to a strong start.
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“Following the impact of our first programme, exceeding its target a full two years ahead of schedule, these three new investments give us good momentum to keep investing Isif capital to tackle the climate challenge with renewed urgency,” he added.
Mr Ashmore also noted that the Isif was backing investors that would aid the Republic in meeting its climate goals and its bid to reach net zero.
The Ireland Strategic Investment Fund completed investing its first €1 billion climate fund by the end of last year. It was originally intended to do this in 2026.
The State established the Isif with cash left from the Republic’s National Pension Reserve Fund, most of which was committed to bailing out Irish banks in 2010 after a property investment bubble burst, propelling the country into recession.
Key areas on which it focuses include climate action, housing and investments that aid Irish businesses to grow.
