On 4 December Copenhagen Infrastructure Partners announced the launch of its Growth Markets Fund II (GMF II). The launch took place during the 2023 United Nations Climate Change Conference (COP 28) in Dubai. With a focus 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, the fund has a target size of $3 billion and is expected to deliver renewable energy infrastructure projects reflecting over $10 billion of capital investment. This will enable more than 10 GW of new renewable energy capacity. It is set to be the world’s largest fund focused on greenfield renewable energy investments in high growth, middle-income markets.
By all estimates, emissions from middle-income markets are expected to grow dramatically over the coming decades. Renewable energy power capacity will need to at least triple by 2030 for the global community to stay on the path to net-zero. To achieve these capacity goals, investments into clean energy must more than quadruple, and middle-income and emerging markets alone will need investments of more than USD 1.9 trillion by 2030. The GMF II fund is expected to play an important part in reaching and realising these goals.
“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 the some of the highest expected growth rates for renewables. They are estimated to account for 25% of global renewable energy capacity by 2050, as economic and demographic growth drives rapidly increasing electricity demand,” said Niels Holst, partner at CIP and co-head of GMF.
Based on GMF II’s already existing portfolio of renewable energy development projects, the fund has the potential to reduce greenhouse gas emissions by more than 10 millon tonnes annually. It launch adds to what has already been a record year at CIP in 2023, with first close of the fifth flagship fund, Copenhagen Infrastructure V (CI V), at nearly €6 billion as well as final close of both the Advanced Bioenergy Fund I and Green Credit Fund I at a combined €2 billion.
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