Green Artha Clean Economy Fund LAB VEHICLE ANALYSIS

The Clean Economy Fund (CEF) is a USD 75 million structured-equity fund targeting a financing gap for Indian climate tech companies seeking USD 1-10 million. It employs a two-stage investment approach using convertible notes for early commercialization and direct equity for early growth, supported by a 20% junior tranche to absorb downside risks from non-converting notes. The fund focuses on three verticals: industrial solutions, energy systems, and the built environment. It aims for a first close of USD 35-40 million by mid-to-late 2026, targeting a mitigation impact of 15 megatons of CO2e over ten years.

• The Clean Economy Fund (CEF) addresses a specific 'financing dead zone' in India for asset-heavy, IP-led mitigation technologies seeking between USD 1 million and USD 10 million, which are often too risky for commercial lenders and too capital-intensive for typical early-stage venture funds.
• CEF utilizes a structured-equity model with a 20% junior tranche designed to protect senior investors by absorbing losses from convertible notes that fail to convert into equity due to stalled progress or failed pilots.
• The fund operates across three priority verticals: industrial solutions for green chemicals and materials, energy systems (including batteries and smart grids), and the built environment (including decarbonized infrastructure).
• Financial modeling indicates that in a base case scenario, the fund is projected to deliver a 21% IRR and 2.9x MOIC, while a downside case (with 50% reduced exit valuations) still generates a positive 11% IRR and 1.7x MOIC.
• The implementation plan targets a first close of USD 35-40 million by mid-to-late 2026, with a total fund target of USD 75 million, utilizing a master-feeder structure with the master fund in India and feeders in Singapore or Mauritius.
• CEF aims to mitigate 15 megatons of CO2e over its ten-year life, using the Project Frame methodology and third-party life cycle assessments (LCAs) to verify net unit mitigation impact.
• The fund's gender strategy includes a target of at least 30% female representation in portfolio company leadership and a commitment to formally join the 2X Challenge upon first close.

APA

Climate Policy Initiative (2025). Green Artha Clean Economy Fund LAB VEHICLE ANALYSIS. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Clean-Economy-Fund_Vehicle-Analysis.pdf

Chicago

Climate Policy Initiative. Green Artha Clean Economy Fund LAB VEHICLE ANALYSIS. 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Clean-Economy-Fund_Vehicle-Analysis.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Green Artha Clean Economy Fund LAB VEHICLE ANALYSIS |date=October 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Clean-Economy-Fund_Vehicle-Analysis.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025green, author = {{Climate Policy Initiative}}, title = {{Green Artha Clean Economy Fund LAB VEHICLE ANALYSIS}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/11/Clean-Economy-Fund_Vehicle-Analysis.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }