Aviva Investors, the asset management business of the insurance giant, has set up a €500m clean tech investment fund targeting biomass, biogas, geothermal, solar and wind projects across Europe.

The company says the European Renewable Energy Fund aims to capitalise on investor interest and the binding EU targets to increase sustainable energy consumption to 20 per cent by 2020.

The geographic focus will be across the EU, mainly in the more mature markets but also in member countries which have relatively immature renewable energy production capabilities.

Joel Lindsey, Aviva Investors fund manager, said:

“Renewable energy projects which significantly reduce carbon emissions provide investment opportunities underpinned by solid market fundamentals and aims to deliver attractive performance. Just as importantly, more and more institutional investors such as pension funds are adopting sustainable investment policies that look for opportunities such as this fund.”

The fund will be managed by SachsenFonds Group, one of Germany’s leading renewable energy investment specialists and the developer of the world’s largest solar energy farm in Brandis, Germany.

The fund is targeting initial gross assets of at least €500m.

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