The India Energy Transition Fund (IETF), managed by EAAA Alternatives, has achieved its first close with $163 million secured towards its $300 million target. A significant boost comes from EIB Global, the development arm of the European Investment Bank (EIB), which has committed $60 million to the fund. This investment aims to propel sustainable growth and decarbonization efforts across India.
The IETF is the first energy transition fund in India to be managed by a domestic fund manager. It will channel equity and quasi-equity into greenfield infrastructure projects and growth-stage companies operating within the Indian energy sector. The fund's investments will focus on climate action and environmental sustainability, specifically targeting renewable energy, energy efficiency, transmission, battery energy storage, and electric vehicles. Circular economy projects, including recycling and wastewater management, may also receive support.
EIB Vice-President Nicola Beer and CEO of EAAA Alternatives Subahoo Chordia made the announcement in New Delhi. Beer emphasized India's role as a key partner to Europe in the global green transition. She stated that the partnership with the IETF will accelerate renewable energy adoption, strengthen energy security and affordability, and unlock sustainable infrastructure investment throughout the country. This initiative aligns with the EU's Global Gateway strategy, which aims to strengthen sustainable connectivity.
Subahoo Chordia noted that, in addition to the EIB's commitment, $163 million has already been raised from family offices and other investors. EAAA Alternatives plans to raise the remaining capital over the next 4-5 years, potentially increasing the fund's size to $500 million. He highlighted that the fund will provide growth equity to facilitate projects in the renewable energy sector.
EAAA Alternatives, managing $7.3 billion in assets as of mid-2025, intends to channel up to 400 billion rupees ($4.8 billion) into India's clean energy sector. This commitment could potentially fund up to 8 gigawatts of new clean energy projects. India aims to achieve 500 gigawatts of non-fossil fuel capacity by 2030, and equity investment is crucial to achieving this goal.
The IETF's focus on scalable technologies with the potential to transform high-emission sectors is expected to drive significant change. Experts believe that climate finance in India is shifting from fragmented investments to strategic, high-value investments that can accelerate the clean energy transition at scale. With clean energy and electric transport achieving cost parity with conventional options, the market is becoming increasingly attractive to investors.
