Cleantech Co-Investment Facility

The Cleantech Co-Investment Facility is a €200 million equity co-investment instrument targeting companies contributing to the EU’s objective to achieve climate neutrality by 2050. This Cleantech Facility, which is funded and operated in collaboration with EIB, was launched in January 2024 and will be deployed over a period of four years. Its purpose is to increase investment into innovative green technologies and business models that will have a meaningful impact on the climate transition, in line with the European Green Deal objectives.

With this Cleantech Facility, EIF will participate in equity funding rounds alongside European Investment Fund-backed fund managers, co-investing on equal market terms and conditions. The Facility will focus on supporting European SMEs and MidCaps, and specifically targets the "second equity gap” that companies often face when moving beyond start-up stage and into the growth phase of their lifecycle. Investees must meet EIF’s criteria for Climate Action and Environmental Sustainability (CA&ES) to qualify for consideration. 

Cleantech has been singled out as a critical sector for future European competitiveness, Increased funding for European cleantech is a core pillar of the European Green Deal Industrial Plan. Moreover, cleantech investments inherently involve a strong innovation component and catalyse the development and expansion of Europe’s cleantech sector overall by crowding-in risk capital.

The European venture capital (VC) and private equity (PE) landscape has witnessed significant growth and interest in the cleantech and climate sectors in recent years. As the urgency to combat climate change intensifies, investments in sustainable technologies and solutions have become a priority for many investors. The growth trajectory is expected to continue, as Europe aims to become a global leader in clean energy and sustainability.

How does the Cleantech Co-Investment Facility work?

EIF-backed fund managers are invited to propose cleantech co-investment opportunities to EIF.  This Facility will suit equity funding rounds for cleantech players in the EU-27 countries and EFTA. The EIF will co-invest individual equity tickets of between EUR 5 million and EUR 15 million each alongside the fund manager in the same equity round. Allocations will be considered on first-come-first-assessed basis. Fund managers will need to provide due diligence based on pro forma requirements. Each opportunity will be screened by EIF, and then reviewed and assessed by EIB. Decisions will be made on the merits of each proposal, within the framework of developing a diversified portfolio of 20-30 investments across different technologies and geographies.

Once approved, the capital will be invested via an EIF co-investment vehicle, which is set up and managed by the fund manager. The size and conditions of each proposed co-investment will be assessed in each case.

What are pre-defined eligibility criteria for the target companies?

The target company must:

• Meet EIF’s criteria for Climate Action and Environmental Sustainability (CA&ES);
• be an SME or MidCap;
• demonstrate strong growth potential.

Fund managers will be expected to offer zero/minimal fee arrangements, and demonstrate alignment through proportionate fund participation in the same funding round and on the same terms as the EIF co-investment.

Detailed eligibility criteria can be found in the Cleantech Co-Investment Facility slide deck.

Fund managers can also consult the Green Guide for Fund Managers, to help them with assessing opportunities against EIF’s CA&ES criteria.

Are you a fund manager investing in the cleantech space?

Fund managers are invited to contact us for more information and submit suitable co-investment proposals using this Approval Form.