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Glennmont Partners launches 250 million euro green credit fund

Glennmont Partners launches 250 million euro green credit fund
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By Reuters
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By Nina Chestney

LONDON - Clean energy fund manager Glennmont Partners has launched a 250 million euro ($241 million) green credit fund to invest in clean energy and infrastructure assets, it told Reuters.

Glennmont Partners raises long-term capital to invest in low-carbon power generation projects, such as wind, biomass, solar and small-scale hydropower plants.

Last week, the company launched a 700 million euro renewable energy infrastructure fund to invest in brownfield clean energy projects across Europe. It has more than 2 billion euros of assets under management.

Glennmont was acquired last year by Nuveen, which manages $1.1 trillion in assets around the world.

The new fund is the second such green credit fund launched by Glennmont. The first raised 200 million euros earlier this year.

There are vast opportunities to invest in energy transition infrastructure as countries seek to wean themselves off polluting fossil fuels, Glennmont said.

The G20 group of nations expects investment capital will need to reach 5 trillion euros between 2021 to 2030 for energy transition in western Europe, up from 550 billion euros between 2010 and 2020.

Dwindling supplies of Russian pipeline gas to Europe this year has prompted several European countries to seek alternative supplies, such as U.S. liquefied natural gas and heavy-polluting coal, to ensure energy for businesses and consumers this winter.

However, the European Union has one of the most ambitious set of targets in the world to reduce greenhouse gas emissions this decade.

Investments of more than half a trillion euros will be needed to modernise Europe's energy grid this decade, if countries are to succeed in ramping up wind and solar power to break free from Russian gas, a draft EU document showed last week.

Glennmont Partners said its second fund will invest primarily in renewables and energy efficiency investments such as grid network management and storage projects.

"The outlook for energy-related assets remains strong as inflation, primarily caused by rising energy prices, appears to be persistent, which is pivotal in indicating a more positive future for borrowers in the energy sector," Scott Lawrence, Partner at Glennmont Partners, said in an interview.

($1 = 1.0389 euros)

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