Amsterdam Climate and Energyfund Established

Published on: 13-11-2013

The city of Amsterdam will invest € 45 million in financial and sustainable energy projects. To this end, Amsterdam has established the Amsterdam Climate and Energyfund. The City of Amsterdam and e3 have signed the agreements marking the start of the Fund.

The Amsterdam Investment Fund (AIF) invests € 70 million in projects relating to climate, sustainability and air quality. The investments are geared towards the reduction of CO2, lowering the energy bills of civilians and enterprises and a healthy living environment. The Amsterdam Climate and Energyfund has been financed with € 45 million by the AIF.

Fund Management
e3 has been awarded the fund management of the Amsterdam Climate after a European Tender. e3 cosists of Privium Fund Management, ewic, Libertus Energy Finance and INNAX. Privium, as the AFM regulated party will be the formal fund manager. Clayton Heijman, Director of Privium: “It has been een long and intensive process, in which the City of Amsterdam had the clear intention to set up a professional and transparent structure, complying with relevant Laws and Regulations. I am convinced we can provide the professionality and continuity the City of Amsterdam is looking for".
The parties share amongst them a long and in-depth experience and knowledge in renewable energy, fund management, investing in and managing of innovative businesses.  The daily Fund Management will be done by Michel Hendriks, Jeroen Meinders en Raymond Steenvoorden. Michel Hendriks: "In a time where bank finance is scarce and hard to obtain for new initiatives, this Fund is an excellent additional source of finance. We think this fund, especially being set up as a fully commercial fund by the City, can and will substantially contribute to the Energy Strategy of the City of Amsterdam."
The Fund will operate seperate of the City of Amsterdam. Clear criteria have been set for possible investments and for the conditions under which the fund has to be managed. An independent Investment Committe approves investments and advises the fund management.

Projects
The fund will invest in projects which clearly contribute to the Energy Strategy 2040 of the City of Amsterdam with a maximum of € 5 million per investment. Projects should to be located within the city limits and may be located in the larger Metropole Region. Investments will be commercially driven, requiring a minimal return of 7,5% per annum and a pre set CO2 reduction per Euro invested. Raymond Steenvoorden: "The fund will primarily invest in projects in Energy Efficiency, Energy Generation and Energy Reduction. A smaller part will be invested directly in innovative companies."

Launch
On Thursday July 4th, the City of Amsterdam and e3, have signed the agreements awarding the fund management contract to e3 and marking the start up of the fund. Raymond Steenvoorden: “The real start of the fund is expected mid September, when we strive to present the first project(s). Before able to invest however, we have to install a competent and independant Investment Committee.”
The Investment Committe will consist of two members proposed by the City of Amsterdam and three proposed by e3. Competences and knowledge within the committe will at least cover project and venture finance, the public sector and renewable energy. Members of the Committee will have no influence in sourcing or deal making and should not be involved direclty with any of the investments.

About e3
e
3  is a consortium set up by Privium Fund Management BV, ewic BV, Libertus Energy Finance BV and INNAX BV. The e3 brand is based on the Trias Energetica; the three major elements of all energy strategies:
1. permanent increase in energy efficiency;
2. augmented use of renewables;
3. cleaner use of remaining fossil fuels.