Diversified private equity investor Eurazeo says the ESG-based fund has a target of more than US$350M and aims to facilitate a carbon-neutral maritime economy by 2050
Global diversified private equity group Eurazeo said its Sustainable Maritime Infrastructure thematic fund would focus on financing vessels with abatement technologies to protect the environment, innovations for harbour-based infrastructure as well as developing offshore renewables.
Although not specific about the exact environmental protection and pollution abatement technologies it would finance, a statement from Eurazeo listed emissions as target areas for investment.
"The fund will contribute to the reduction of greenhouse gases, sulphur oxides and nitrogen oxide emissions, which are particularly harmful to air quality," the Eurazeo statement said. "The emissions reductions achieved by the Fund’s investments will be measured through quantitative indicators. The methodology used has been reviewed by independent experts and the assessment of the emissions reductions will be subject to an annual external audit."
Eurazeo said its fund will directly own the maritime assets it finances, renting them to those who apply for their financing.
"The fund will support around 50 European facilities that will back the transition of the maritime economy to become carbon neutral by 2050 in line with the ambition announced in the European Green Deal. Several renowned sovereign and institutional investors have already confirmed their involvement in the fund, which has a target size of €300M (US$361M)," the Eurazeo statement said.
The fund will be managed by Idinvest Partners and will use asset finance to generate quarterly distributions from rents received on maritime assets, according to Eurazeo.
In addition to supporting maritime’s decarbonisation, the purpose of the fund is to help Eurazeo achieve its own net carbon neutrality by 2040 as part of its environmental, social and corporate governance investment strategy. Eurazeo said its fund adheres to EU regulation 2019/2088 (known as the ’disclosure regulation’).
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