[Edaily Marketin Soyoung Park Reporter] A trend is emerging worldwide in which institutional investors—such as pension funds and insurance companies—are stepping in as limited partners (LPs) to provide long-term funding to the energy and climate tech industries. This stems from the view that while government policy-based financing may serve as an initial catalyst, long-term funding is essential to support companies as they enter the business expansion phase.

The industry believes that venture capital (VC) funding, which is concentrated on the early stages of technology development and demonstration, is insufficient to support large-scale facility investments and business expansion. Consequently, there are calls for institutional capital to be supplied over the long term to drive companies’ continued growth.

Supporting the Scale-Up of Energy and Climate Tech with Long-Term Institutional Capital

According to the global investment banking (IB) industry on the 4th, there is a growing trend in

the energy and climate tech sectors

where policy-based financing shares the initial risks, while long-term

institutional capital

—such as pension funds and insurance companies—participates subsequently to fill the funding gap for scale-up.

For example, the European Union (EU) launched the European Institutional Investors Pact (EIIP) last September. This program supports institutional investors by making it easier for them to invest in funds established by European venture capital (VC) and private equity fund (PEF) managers. Through this initiative, 13 institutional investors have expressed their intention to invest in strategic technology companies—including those in the energy sector—via funds formed in Europe.

The EU’s purpose in establishing this pact is clear. Ekaterina Zaharieva, the EU Commissioner for Startups, Research, and Innovation, stated, “Many companies struggle to secure late-stage capital,” adding, “Through this pact, we aim to connect abundant long-term investment capital with promising innovative companies, supporting them not only to scale up but also to remain in Europe.”

Singapore’s sovereign wealth fund, Temasek, has even established a separate organization dedicated to climate tech investments. In June 2022, Temasek launched “GenZero,” an investment platform designed to accelerate decarbonization, injecting an initial capital of 5 billion Singapore dollars (approximately 5.2407 trillion won).

In April 2021, Temasek partnered with BlackRock, the world’s largest asset manager, to establish a joint venture called “Decarbonization Partners” with a capital contribution of $600 million (approximately 804.1 billion won). This venture was created to invest in technologies such as △renewable energy △power grids △battery energy storage systems (ESS) △electric vehicles and autonomous driving △and decarbonization.

Recently, in South Korea as well, the Ministry of SMEs and Startups and the Ministry of Climate, Energy, and Environment announced plans to provide approximately 600 billion won in financial support for the climate tech sector. They will utilize the Future Environmental Industry Investment Fund, green loans, and the Climate Tech Innovation Fund. The plan is to provide long-term funding through customized financial support tailored to each stage of a company’s growth.

An official from a domestic venture capital firm stated, “When companies move beyond the research and development (R&D) and proof-of-concept (PoC) stages to begin constructing factories or pursuing large-scale projects, the scale and nature of the required funding change,” adding, “During the business expansion phase, diversified funding sources—such as growth equity, private equity (PE), and infrastructure investors—are necessary.” He continued, “This means it is essential to establish a system where follow-on capital consistently supplies the funding that the government or early-stage investors find difficult to cover.”

Promising Energy Technologies Meet ‘Capital’ to Go Global

Meanwhile, E-Daily

,

in collaboration with the Korea Electric Power Corporation (KEPCO), will host the “Global Alternative Investment Conference in BIXPO (GAIC in BIXPO)” on November 5 at Multipurpose Hall 1 of the Kim Dae-jung Convention Center in Gwangju, Jeollanam-do. This conference is one of the main programs of the “Bitgaram International Power Technology Expo (BIXPO) 2026,” hosted by KEPCO. It will take place from 2:00 p.m. to 5:00 p.m.

The main theme of the conference is “Tech Meets Capital: Energy Deep Tech Scale-up.” Experts representing the domestic and international energy industries will gather at the event. They will explore ways to scale up innovative technologies and businesses through the integration of energy deep tech and global capital. Strategies for investment opportunities and corporate incubation will also be discussed.

First, Douglas Kang, Investment Partner at Seraya Partners, will deliver the keynote address. Partner Kang will also participate in a panel discussion with Lee Jong-min, CEO of KEPCO Technology Holdings. The two speakers plan to highlight the conditions necessary for transforming public energy technologies into actual business opportunities. They will also discuss the role of private capital in this process, as well as growth strategies linked to global investment.

The theme of the first session, which follows, is “Why Energy Deep Tech Now?” Kim Won-bin, Director of the Infrastructure Investment Division at the Korea Investment Corporation (KIC), will deliver a presentation. The subsequent panel discussion will feature Director Kim Won-bin, Kim Jin-hwan, Head of the Real Estate Infrastructure Team at the Private School Pension Fund; Woo Shin-je, CEO of Energy Infrastructure Asset Management; and Lee Yong-gwan, CEO of Bluepoint Partners. Professor Park Chan-guk of the School of Convergence Studies on Climate Change at Hankuk University of Foreign Studies will serve as the moderator.

The second session, titled “The Convergence of Technology and Capital: How Are Energy Unicorns Created?”, will follow. Masaaki Mezaki, CEO of GPSS, will deliver the presentation. Afterward, Lee Deok-jun, CEO of D3 Jubilee Partners; Chris Lee, CFO of Amogi; and Jang Bo-yoon, CEO of Iterten, will participate as panelists. Jeong Dong-jae, a senior researcher at the Korea Institute of Energy Technology, will moderate the panel discussion.