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Here's Why BP Intends to Invest in India's Green Energy Fund

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BP plc (BP - Free Report) announced plans to invest $70 million in Green Growth Equity Fund (GGEF) of India. The fund, being promoted by the India’s National Investment and Infrastructure Fund (NIIF) and the government of U.K., was established in 2018.

Notably, after the completion of the investment, India’s GGEF will be more focused to scale up growth in zero carbon and low carbon energy solutions in the nation. Importantly, the investment is not only going to aid India to significantly lower greenhouse gas emissions but will also create a platform for the British energy major to invest alongside GGEF in many low-carbon projects in India that are commercially viable. The investment will also make BP a limited partner in GGEF and enable the company to represent on the advisory committee.

The fund, comprising investments from the governments of India and the U.K., has a target to reach roughly $700 million in investment commitments. Overall, with the investment strategy, BP is not only committed for reimagining energy for India but will also advance to become a net zero emission company by 2050 or sooner.

BP is not the only company investing in non-oil businesses like renewable energy to align goals with the Paris Climate Agreement. Royal Dutch Shell plc is another key energy firm planning to become a net zero emission energy firm by 2050. Eni SpA (E - Free Report) is also committed to renewables for a cleaner future.

BP currently carries a Zacks Rank #3 (Hold). Meanwhile, a better-ranked player in the energy space is Murphy USA Inc. (MUSA - Free Report) . The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Murphy USA is likely to see earnings growth of 7% in the next five years.

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