Northern Arc's Climate Fund Fuels India's Green Future

NBFC firm Northern Arc secures USD 65 million for its first climate fund from international development banks. The fund supports growth-stage companies in solar energy, energy efficiency, and other sustainable sectors, aligning with India's renewable energy goals.

Northern Arc, a Non-Banking Financial Company, announced on Thursday that it has secured USD 65 million in funding for its inaugural climate fund through its fund management arm, Northern Arc Investments IFSC Trust.

The climate fund has garnered commitments of USD 50 million from the United States International Development Finance Corporation (DFC) and USD 15 million from OeEB, the official Development Bank of Austria. The fund, located at Gujarat International Finance Tec-City (GIFT City), aims to provide debt financing to growth-stage companies in sectors like solar energy, energy efficiency, and sustainable agriculture.

In addition to supporting the renewable sectors, the fund will also target businesses innovating within the circular economy and water sectors, while promoting technologies that minimize environmental impact. This initiative underscores Northern Arc's dedication to aligning with India's climate goals and contributing to the country's endeavors in emissions reduction.

(With inputs from agencies.)