Ireland Strategic Investment Fund eyes five-year €1bn climate-aware investment drive

They will investment in areas such as sustainable infrastructure, energy efficiency, energy storage, renewables, forestry and waste

ISIF director, Nick Ashmore, said: "Our society needs better technology, better ways of doing things and better ways to sustain our natural environment and the climate we depend on."

The Ireland Strategic Investment Fund (ISIF) – the country’s sovereign wealth fund – has reported a €450m gain in its investment value for the first half of this year and has said it is now targeting a €1bn combined investment in green-focused climate action projects over the next five years.

In its half-yearly report, ISIF – which is controlled by the NTMA – said it saw a 5.2% return on its investments in the six months to the end of June. 

That, it said, brought its total gains for the past 18 months to €1bn.

ISIF’s current investments include stakes in Irish tech giant Stripe, aircraft leasing firm Genesis and artificial intelligence-focused cybersecurity specialist Vectra. Now, the fund is set to turn its focus increasingly towards climate awareness projects. 

This will take in investment in areas such as sustainable infrastructure, energy efficiency, energy storage, renewables, forestry and waste and will see it invest around €1bn between now and 2026.

“Our planned investment programme reflects the urgency of the climate challenge and the significant opportunities that exist to back Irish businesses and projects that are developing new and more sustainable ways of doing things,” said ISIF director Nick Ashmore.

"ISIF plans to make both direct and fund-based investments aligned with this strategy, partnering with major global investors where appropriate, and will make further announcements over the coming months. We look forward to continuing to invest and be a catalyst for Ireland’s transition to net zero," Mr Ashmore said.

He said the five-year investment plan is "ambitious, but essential".

“Climate change is set to be the greatest challenge facing our society in our lifetimes and beyond," he said.

"The urgency of the challenge is driving the far-reaching actions being taken by societies, governments, businesses, consumers and investors to create a more sustainable economy and way of living. Our society needs better technology, better ways of doing things and better ways to sustain our natural environment and the climate we depend on.

"ISIF, as Ireland’s sovereign development fund, is in a unique position to drive this investment, make it easier for quality projects to access both public and private capital, and fill gaps in the capital and risk spectrum," Mr Ashmore said.

ISIF - which succeeded the old National Pensions Reserve Fund - said it made 10 new investments in the first half of this year, bringing total “commitments” in Ireland to €5.2bn across 151 investments.

It said, through its various investments, it supported more than 48,000 jobs and contributed more than €1.2bn in gross value added to the Irish economy. It also allocated €2bn, through the Government’s Pandemic Stabilisation Recovery Fund, or PSRF, to support Covid-disrupted businesses.