Climate Fund in 2022: EUR 79.9 million in investment decisions to promote the green transition

Climate Fund in 2022: EUR 79.9 million in investment decisions to promote the green transition
  • Aeromon: More accurate quantification of fugitive emissions. Capital loan of 2.4 million euros.
  • DataSpace Europe: Information transfer service in the food chain. 1 million euro capital loan.
  • Finn Recycling: Foundry sand recycling solution. 8 million euro capital loan.
  • Hykamite: Demonstration plant to promote the production of emission-free hydrogen and industrial coal. A capital loan of 10 million euros.
  • Infrared: Information management service to reduce emissions from infrastructure projects. 6 million euro capital loan.
  • Norsepower: Rotorsail technology to reduce maritime emissions. A capital loan of 10 million euros.
  • QHeat: Medium deep thermal wells. A capital loan of 3.3 million euros.
  • Taaleri Bioteollisuus I capital fund: Sustainable investments in the bioindustry. 15 million euro investment.
  • The Finnish Climate Fund did too three as yet unpublished investment decisions.

There is a clear and established demand for our financing. As the investment market becomes more and more challenging, customers’ need for financing, especially from the Climate Fund, has actually increased from around one billion euros to around 1.5 billion euros. To meet this need, we have increased our annual funding target to 130 million euros from 2023 onwards.“, says Paula LaineCEO of the Finnish Climate Fund.

Finnish Climate Fund in 2022

  • The CEO of the Climate Fund is Paula Laine. There were no changes in the composition of the board during the year and Perttu Puro continues as chairman of the board.
  • The Finnish Climate Fund employs 24 people at the end of the year.
  • Climate Fund’s strategy and investment criteria were renewed.
  • The carbon footprint of the Climate Fund’s own operations (scope 3 upstream) was 99 tCO2-eq.

In addition to analyzing and implementing investment decisions, the Climate Fund focused in 2022 on developing the company’s results and increasing the financing volume: the investment criteria were clarified, the instrumentation and financing categories were specified, and the average ticket size of the investments. was increased to 4-40 million euros. The recruitment and induction of new personnel were also an important part of 2022.

The increased uncertainty of the operating environment, which has continued in recent weeks, has emphasized the role of actors like the Climate Fund in the market. The strategy changes we have made are designed to better meet the financial needs of our customers“, explain Perttu PuroChairman of the board of the Climate Fund.

The Act on the Climate Fund, which entered into force in February 2023, opens up new opportunities for wider social impact. The new law gives the Finnish Climate Fund the opportunity to use asymmetric instrumentation, i.e. accept a lower return on its investment or take a greater risk than the private investors participating in the project, which speeds up climate solutions even more.

Climate Fund finances and profit estimates

  • Net income: 38.1 million euros
  • Income from assets and investments: 53 million euros
    • Dividend income from Neste Oyj: EUR 52.4 million
    • Interest income from operational investments: 0.4 million. euro
    • Interest income from liquid assets: 0.2 million. euro
  • Operating expenses: 5.1 million euros
    • Personnel costs: 2.6 million euros
    • Preparation of the investment decision: 1.7 million. euro
    • Other business expenses: 0.8 million. euro
  • Tax footprint: 11.2 million euros
  • Based on the authorization of the Finnish state, the owner capital invested by the Finnish Climate Fund with 200 million euros in December 2022.
  • Final balance on 31 December 2022: 3.1 billion euros
    • The climate fund’s balance mainly consists of an 8.3% stake in Neste Oyj (the market value of the holding on 31 December 2022 was approximately EUR 2.75 billion).

The company’s liquid assets are invested in bank accounts, short-term time deposits and interest funds. The unrealized losses of interest funds at the end of 2022 were 298,701 euros, but the bills recovered during the first months of 2023 and the combined value of the interest funds was about 275,000 euros of profit at the end of February. No impairment losses have been detected or recorded on operational investments of the Finnish Climate Fund.

Based on the investment council’s annual assessment, the Finnish Climate Fund’s operations have started well and its investments are in line with the company’s mission. According to a third-party assessment carried out by KPMG at the request of the Ministry of Economy and Labour, the Climate Fund has positioned itself appropriately in the financial market and performed well during the first two years of operation. The company’s operations have a clear social impact, and the investment decisions made and the trade formed are in line with the climate fund’s special commissioning role and goals.

*The theoretical cumulative ten-year emission reduction potential of the Climate Fund’s investment targets in 2022 is 101 Mt CO2-eq, if the customers’ business plans are fully realized. The theoretical cumulative ten-year emission reduction potential of the company’s entire investment portfolio is 287 Mt CO2-eq. Nevertheless, there is significant uncertainty as to whether the emission reduction potential can be fully realized.


Source: The Nordic Page




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