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Carbon Credit Capital plans $100-m fund for renewable projects

India has gained international recognition for its efforts in Cleantech. Earlier this year, Tulsi Tanti, the chairman and managing director of Suzlon, was invited to speak  at The Wall Street Journal’s ECO:nomics conference in Santa Barbara, California and he talked about the four rules that cleantech companies have to follow to make it big.

As Panchabuta had earlier mentioned, World Bank  and International Finance Corporation (IFC), have mentioned that they will double loans given to renewable energy projects to $2 billion (Rs9,103 crore) in the next three years in India. Further, the lending will primarily be for power generation and energy efficiency projects. The World Bank largely funds government projects while the IFC caters to the private sector.

Recently, Nick Parker , chairman of the Toronto-based Cleantech group, a respected market intelligence firm had said, “The good news is that Indians are responding aggressively to the challenge of environmental sustainability through a clean-tech revolution. There is real meat on the bones.”

Parker, who has pioneered “sustainability-driven” private equity funds and had founded an environment finance firm during his 15 years in the financial world, said a lot of money was already flowing into clean technology projects. He said venture investments in local Indian clean-tech companies totalled over $800 million in the past four years and are rising.

While there are uncertainties prevailing over the carbon market and all does not seem to be well, the Renewable energy Certificates and the REC market, though different from CDM market, has definitely provided the impetus for renewable energy projects in India according to most senior executives from major IPP’s and wind manufacturers that Panchabuta spoke to.

Earlier this year, Baltimore, US-based SunEdison  announced its intention to invest $100 million in solar projects in India and the company’s President, Mr Carlos Domenech, had said that many private equity investors are interested in partnering SunEdison and a deal could be struck in about three months.

According to reports  (Hat tip:VCCircle), the US-based Carbon Credit Capital proposes to launch a $100-million India-specific fund this year to invest in renewable energy projects.

“We would start with $100 million this year and will eventually increase it to $500 million,” said Ms Olivia Fussell, President, Carbon Credit Capital.

The carbon financing firm will invest in a range of projects across all renewable technologies such as solar and biomass among others.

Ms Fussell said the company is in talks with the US-based private individual investors for raising the fund, which will be launched this year.

“We may complement it with multilateral fund. We are in initial talks with International Finance Corporation,” she added.

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