Monday, May 23, 2011

ADB invests in three climate change technology venture capital funds

The Asian Development Bank: The Asian Development Bank (ADB) is investing $60 million to help set up three venture capital funds dedicated to nurturing new climate change technologies. The funds will primarily target the markets of the People's Republic of China (PRC) and India, which are actively promoting clean energy and sustainable technologies.

"Climate change will hit Asia hard in coming decades. Investing in these venture capital funds will help channel finance into innovative and affordable technologies that tackle the challenge of climate change in ways that are suited to developing Asia," said Philip Erquiaga, Director General of ADB's Private Sector Operations Department.

ADB is injecting $20 million each into the three funds - Aloe Environment Fund III, Keytone Ventures II, and VenturEast Life Fund III - that should leverage an additional $600 million-$700 million private sector investment into the funds. The funds will, in turn, invest in early-stage technology companies that address climate change mitigation and adaptation or environmental protection, also known as climatech. Early-stage companies are new firms which have not yet reached annual profitability.

…VenturEast Fund is expected to invest a total of $200 million into companies in the Indian market that seek to apply proven technologies from other regions. Its climatech investments will be divided between healthcare, sustainable agriculture, and clean environment technologies. It will make minority investments of $5 million-$15 million in 15-18 companies. VenturEast Mauritius Investment Advisors will manage the fund….

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