Infrakit

The yearly emissions of infrastructure building (the construction of, for example, transport routes, logistics centres, energy infrastructure or industrial structures) in Finland are approximately 1.4 Mt CO₂-eq. Over half of this is generated by the fuel consumption of machinery and vehicles, and by improving the efficiency of them, the emissions of infrastructure construction sites can be reduced. 

Infrakit offers data management services for infrastructure projects, particularly for reducing the duration and costs of construction. Infrakit’s sustainability function – the target of the Climate Fund’s investment – will offer more precise information and tools for boosting emissions reductions to construction companies and infrastructure managers in Finland and abroad. The service lets its users leverage climate and environmental data as well as measure and anticipate the emissions generated by their operations.    

The Climate Fund’s investment decisions are guided by a set of criteria emphasising impact, against which every case applying for funding from the company is evaluated. Preconditions for funding include a credible plan for repayment of the investment, alignment with the six environmental objectives of the EU’s sustainable investment network, i.e. the “do no significant harm” principle, and that with Climate Fund’s investment the project will be realised earlier, on a larger scale or in the first place. When the preconditions are met, the final selection will be made based on impact criteria, such as emissions reduction potential. 

The emissions reductions achieved by Infrakit are indirect: its technology enables the recognition of emissions but the ultimate emissions reductions depend on the corrective action taken by the company’s customers instead of directly from the technology or product of the company being financed.  Infrakit’s data-based management features offer tools for determining the customer’s carbon footprint, monitoring actual emissions and optimising emissions during the project’s implementation. By using this data, Infrakit’s customers are able to decrease their emissions. Improving the efficiency of transport and the utilisation of machines and materials can reduce the emissions of infrastructure construction sites by an estimated 5%.   

The Climate Fund’s capital loan of up to €6 million has a convertibles option and will be allocated to the development of an emissions-reducing functionality and the acceleration of the software’s international deployment. The interest on the Climate Fund’s capital loan is priced at the market rate and the capital loan also includes a conversion right.