Copenhagen Infrastructure Partners (CIP), a Danish investment company, announced today at COP28 in Dubai the launch of its Growth Markets Fund II (GMF II), setting the stage for a significant stride in greenfield renewable energy investments.
With a targeted size of $3 billion, the fund focuses on “developing and building offshore and onshore wind, solar PV, energy storage and Power-to-X projects in selected high growth middle-income markets across Asia, Latin America and EMEA,” CIP explains in a press release.
It is set to be the world’s largest fund in high-growth, middle-income markets and is expected to enable over 10 GW of new renewable energy capacity and deliver renewable energy infrastructure projects reflecting over $10 billion of capital investment.
“This fund will be deploying significant private capital and therefore ensure renewable projects in countries, where it will contribute to growth and job creation and deliver substantial impact in terms of reducing carbon emissions,” Senior Partner and founder of CIP said Christina Grumstrup Sørensen.
The strategic focus on middle-income markets underscores the global imperative to address the surge in emissions expected from these regions in the coming decades. To stay on the trajectory toward net-zero, renewable energy capacity must triple by 2030, requiring a fourfold increase in clean energy investments.
Middle-income and emerging markets alone, as CIP writes, will need investments of over 1.9 trillion by 2030.
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“These middle-income and emerging markets represent not only a mandatory task for the industry — and we believe that they are also very attractive markets for investors seeking exposure to some of the highest expected growth rates for renewables,” said Niels Holst, partner at CIP and co-head of GMF. “They are estimated to account for 25% of global renewable energy capacity by 2050, as economic and demographic growth drives rapidly increasing electricity demand.”
The fund, according to CIP, prom to reduce greenhouse gas emissions by over 10 million tonnes per year and power over 10 million homes with clean energy.
“With GMF II we are applying our proven greenfield and industrial investment approach from our predecessor funds to create excess returns while significantly mitigating risks,” said Ole Kjems Sørensen, Partner at CIP and co-head of GMF. “The fund is off to a good start with a large and diversified portfolio of projects reflecting potential equity commitments of more than USD 5 billion – far exceeding the target fund size. We expect the fund to be a global driver in the green and just transition.”
Editor’s Note: The opinions expressed here by the authors are their own, not those of Impakter.com — In the Featured Photo: An offshore wind farm. Featured Photo Credit: Nicholas Doherty.