Combo Investments in Pan-Europe Solar PV Developer and Global Upstream Oil & Gas Company

Date：20 December 2023

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In October 2023, Silk Road Fund (SRF) closed a deal with a large European energy company by establishing a Pan-Europe Solar Photovoltaic (PV) Platform and investing into a global upstream oil and gas project at the same time. With the carbon emission reduction of the PV project completely offsetting the emission of the upstream oil and gas project, SRF effectively reduces the carbon intensity of its portfolio, by packaging green assets with brown assets. In addition, SRF has incentivized the investee company to improve ESG capacity through an ESG-linked carry sharing mechanism.

The Pan-Europe Solar PV Project develops and operates solar power plants in 12 European countries, reducing more than 200,000 tons of carbon dioxide emission per year. The target company of the upstream oil and gas project is one of the first oil and gas companies in the world to support the Kyoto Protocol and commit to achieving "net-zero emission" by 2050.