THE RADICAL shift in Government policy on climate change, which involves a proposed climate change Bill being long-fingered, will be positive for green investment funds, according to backers of the simple.ie fund.

Earlier this month, Minister for the Environment Phil Hogan said he would concentrate on other initiatives and policies rather than setting statutory targets for emissions reductions, the preferred option of the previous administration.

“On the surface, this could be seen as negative for our funds’ prospects, both current and future. In reality, we believe it is positive,” said Elliott Griffin of BVP, the investment managers, which yesterday launched its fifth Business Expansion Scheme (BES) fund which will focus on backing green technology firms.

The first four simple.ie Green BES funds have raised €4.8 million from investors and BVP said they are providing indicative returns of 20 per cent annually.

“Looking beyond legislation, there is a business rationale for each of the companies we have invested in,” said Mr Griffin.

He cited CM Ventures, one of its portfolio companies, which disinfects water at 50 per cent of the cost of existing systems which are heavy users of electricity, and EFT Control Systems, which allows smaller firms to start managing their energy costs.

The Minister said he believed environmental protection and a competitive economy were complementary, not competing.

Mr Griffin said his firm has a very similar view and invests where it finds there is a sustainable market for the product, the company is attractive in terms of technology, potential return and sustainable competitive advantage and has “a great team”.

The fund closes at the end of the year.