ISIF backs new €340m fund for Irish climate transition

The Ireland Strategic Investment Fund (ISIF) has committed up to €140 million as a cornerstone investor in a new €340 million climate action infrastructure fund focused on Ireland's energy transition.

The fund is managed by TirNua Capital Partners, an independent private markets investment manager formed by Irish Life Investment Managers (ILIM) and Northleaf Capital Partners. TirNua is employee-managed and targets infrastructure assets aligned with climate and energy-transition priorities.

At least 60% of the fund's investments are expected to be in Ireland. The strategy spans renewable power, battery energy storage, data centre decarbonisation, offshore wind support services, building efficiency, biogas and green transport.

The commitment forms part of ISIF's climate action investment programme. Operating within the National Treasury Management Agency, ISIF invests alongside private capital and serves as a catalyst for attracting additional funding to domestic projects and companies.

Climate programme

ISIF plans to double its climate action programme after reaching an initial €1 billion investment target in 2025, two years ahead of schedule. It aims to deploy a further €1 billion in climate action investments from 2025 to 2029.

ISIF's cornerstone role in the TirNua fund also signals increased use of specialist managers and pooled vehicles. The arrangement adds a new platform alongside existing managers and ISIF's direct investments in energy-transition assets.

The fund's sector focus mirrors areas that have become central to investment flows in Ireland's decarbonisation drive. Renewables and storage sit alongside more industrial themes such as data centre decarbonisation and offshore wind support services. Building efficiency and low-carbon transport are also within scope.

The inclusion of data centre decarbonisation reflects a growing financing theme in Ireland, where rising electricity demand has sharpened the focus on emissions reductions and grid impacts. Battery storage and offshore wind support services point to interest in assets that complement generation and address system constraints.

Manager structure

TirNua brings together ILIM and Northleaf Capital Partners. Northleaf describes itself as a global private markets investment firm specialising in private equity, private credit and infrastructure. ILIM is a domestic investment manager with a footprint in institutional markets.

The platform is designed for long-term capital pools such as pension funds. The TirNua fund has reached €340 million in commitments, including ISIF's allocation. Further fundraising could increase the available capital for the targeted assets, although no additional targets were stated.

Simon Harris, Tánaiste and Minister for Finance, framed the investment as part of the delivery of national climate policy.

"I very much welcome today's announcement by ISIF of €140 million - an investment that will help drive progress in the crucial area of climate action," said Harris.

He also linked the investment to economic impacts beyond emissions reductions.

"By investing in these vital infrastructure projects, we are supporting the energy transition in Ireland, while also creating jobs and supporting local economies," said Harris.

ISIF interim director Rebekah Brady described the commitment as an example of the fund's approach across managers, platforms and businesses.

"This commitment to TirNua's fund is a strong example of how ISIF's climate investment programme is supporting the Government's Climate Action Plan - backing both new and existing fund managers, platforms and businesses to enable infrastructure to support Ireland's energy transition," said Rebekah Brady, interim director at ISIF.

Brady also pointed to the investor base TirNua expects to attract into Irish energy-transition projects.

"TirNua is a pioneering Irish platform which will seek to catalyse investment from pension funds and other investors into the energy transition in Ireland, driven by the ILIM partnership," said Brady.

TirNua chief executive David O'Brien described the platform as a route for investors to place long-duration capital into domestic transition projects.

"As a first-of-its-kind private markets platform committed to Ireland's transition to a lower carbon economy, TirNua represents an exciting new way for investors to channel long-term capital into the projects that will positively shape Ireland's future. We are especially proud to have ISIF as a cornerstone partner on this journey," said O'Brien.

The fund's investment focus places it at the centre of a widening market for energy-transition assets in Ireland, with activity expected across renewables, storage, efficiency, and enabling services in the coming years.