Green investment fund to shut amid net zero backlash

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illuminem summarises for you the essential news of the day. Read the full piece or on The Telegraph enjoy below:

🗞️ Driving the news: SDCL Efficiency Income Trust (SEIT), a UK-listed green investment fund, has announced plans for a managed wind-down, leaving investors potentially facing losses of 50% or more

🔭 The context: The fund, which raised £1.2 billion since launching in 2018, invested in projects such as rooftop solar installations and biomass plants
• However, rising interest rates, weaker renewable energy valuations and regulatory changes, particularly in the United States, have undermined returns and investor confidence

🌍 Why it matters for the planet: The collapse highlights the financial pressures facing renewable infrastructure investments in a high-interest-rate environment and amid political backlash against net-zero policies
• It raises concerns about the stability of capital flows into clean energy

⏭️ What’s next: SEIT is set to begin selling its assets and returning capital to shareholders
• Though analysts warn the current market for renewable infrastructure is challenging, which could complicate asset sales and prolong the wind-down process

💬 One quote: After consulting investors, the board said there was a “clear preference for liquidity,” prompting the decision to wind down the fund

📈 One stat: Shares in SDCL Efficiency Income Trust have fallen to 42.5p, down from as much as 114p during earlier fundraising rounds

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