The Climate Investment Fund, a Norwegian fund managed by development finance institution Norfund, will make its first investment of INR 900 million ($11 million) in an Indian transmission project.
Norfund, together with KLP, Norway’s largest pension company, will acquire a 49 percent stake in the transmission project, which is being developed by ReNew Power, according to The Economic Times. The project is located in the Koppal district in Karnataka and offers opportunities for additional joint investments.
The Climate Investment Fund became operational in May 2022, following the Norwegian government’s decision to establish it in December 2021. The fund will allocate NOK 10 billion ($1 billion) throughout the next five years. It will be capitalized with NOK 2 billion ($201 million) each year, with NOK 1 billion ($100 million) coming from Norfund’s capital and NOK 1 billion ($100 million) from the state budget each year.
The purpose of the Climate I
