Copenhagen Infrastructure Partners (CPI) have secured 4 billion euros from investors in the commitment of its new renewable energy fund, Copenhagen Infrastructure IV (CIP IV).
The Danish investment company specializing in renewable infrastructure projects, particularly wind power, attracted investors in Scandinavian countries as well as UK and Australia.
The CIP IV was launched five months ago with a target of between 5 billion and 5.7 billion euros, and five months ago, focusing on greenfield investments in energy infrastructure around the world.
In this project, CPI employs investments across a variety of climate-conscious technologies, including contracted offshore wind, onshore wind, solar power, transmission, storage and economic cooperation and development organizations (OECD) countries in the Northern Hemisphere, and low-risk organizations (OECDs) in developed countries in ASIA and Australia.
The CIP “adjusted for institutional investors with long-term investment horizons” describes the scheme as a “promising” addition to a market that has “proven and functional despite Covid-19 and market turmoil.”
Among the contributors to the fund are two Danish pension funds, pensions, AP pensions, and assortment of other pension and life insurance companies based in the region.
“Several prominent institutional investors from Scandinavia, continental Europe, the UK, Israel, Taiwan, Japan and Australia have also submitted plans to commit to the project,” CIP said in a statement on its website.
Jakob Baruël Poulsen, managing partner at CIP, commented on the company’s announcement, commenting:
“We are extremely pleased with the continued trust of investors in CIP’s approach to Energy Infrastructure Investments and look forward to continuing to create value for investors, project partners and communities through the fund’s investments.
“As a market leader and pioneer in renewable energy, we are extremely pleased to be able to continue to observe our strong appetite for renewable energy. CIP flagship fund investments have long-term contract cash flows and a robust investment structure, including low energy price risk exposure and careful use of financial leverage, and have proven resilient and acyclical.
“The investment outlook for CI IV is very promising and we expect the fund to be fully committed within about three years and to have investments in attractive projects with similar characteristics to existing investments.”
Earlier this year, global investment firm BlackRock said concerns about the emerging climate crisis are beginning to season their investment portfolios around the world. CEO Larry Fink told Bloomberg:
“Clients around the world have been asking me more and more about how to frame a portfolio with climate change considerations. It was very clear to me that this has become a dominant theme among more and more investors.”
Many similar projects have emerged in recent months, with the UK’s own major pension scheme pledging to nest and put £5.5 billion in “climate-conscious” investments, and pledging to de-burn the entire portfolio by 2050.
Just two weeks ago, the European Commission announced its target of reducing emissions by “at least” at 55% by 2030, in an attempt to win the title of the world’s “first air-neutral continent.”
For more information, check out our guide to investing in three similarly sustainable climate-oriented funds. Also, see why the “greenwash” threat poses a risk to distinguish a sincere, good projects from bad people.
