Amsterdam Climate Energy Fund (ACEF) launched

Amsterdam Climate Energy Fund (ACEF) launched

Amsterdam is going to invest €45 million in financial and long-term profitable energy projects. To that end, the Municipality of Amsterdam formed the Amsterdam Climate & Energy Fund. On Thursday 4 July, the Municipality of Amsterdam and e3 signed the agreement, marking the launch of the fund.

Fund Management
The management of the Amsterdam Climate and Energy Fund has been awarded to the e3 consortium. One of the participants in e3, Privium Fund Management, will act as fund administrator. Privium is supervised by the Authority for the Financial Markets. Clayton Heijman, director at Privium: “It’s been a long and intensive process in which it was made clear from the start that the municipal authorities pursue a professional and transparent structure that meets the current supervision requirements. I believe we can provide the municipal authorities with a full service solution in that.”

In addition to Privium Fund Management, other parties that make up the e3 consortium include ewic, Libertus Energy Finance and INNAX, experts in making buildings sustainable. Together, these parties have many years of extensive experience in selecting and managing project investments and investing in innovative ventures. Day-to-day management will be handled by Michel Hendriks, Jeroen Meinders and Raymond Steenvoorden. Michel Hendriks: “In a period during which lending to new initiatives has practically come to a standstill, this fund forms an excellent source. We believe that this fund, particularly with a view to the manner in which it has been set up by the municipal authorities, can make a serious contribution to the implementation of the Amsterdam 2040 Energy Strategy. In concrete terms: we aim to achieve a CO2 reduction of more than 2 million tons. This corresponds with the annual emission of 100,000 cars over a period of 15 years.

The fund operates at a distance from the municipal authorities. The conditions under which the fund manager must work have been set out in advance, as well as in what projects it can invest and what requirements management has to meet. An independent investment committee supervises the fund.

Type of projects
The fund will exclusively invest in projects that make a demonstrable contribution to the Amsterdam 2040 Energy Strategy. In principle, the investment must be made within the Amsterdam city borders. If the nature of a project crosses city borders, the metropolitan region must be deemed the border.  The metropolitan area generally stretches from IJmuiden to Lelystad and from Purmerend to Haarlemmermeer. The investments must be made under market-competitive conditions. In concrete terms this means that investments must have a minimum yield objective of 7.5%. Raymond Steenvoorden: “The fund will mainly invest in projects in the fields of energy conservation, sustainable energy generation and energy efficiency. A small part of the investments must be allocated to innovative companies.”

On Thursday 4 July, the Municipality of Amsterdam and e3 signed the agreement instructing Privium to manage the Amsterdam Climate and Energy Fund. Raymond Steenvoorden: “The actual launch of the fund is planned for mid-September. As part of that launch, the fund will introduce its first investment projects. However, an independent and expert investment committee must be appointed first.” The Municipality of Amsterdam can nominate two members for the investment committee and must approve the other three members. When compiling the committee, knowledge and experience in the fields of investments, public sector, financing and sustainable energy must in any case be present. The members are explicitly not involved in the selection of the investment projects.