Copenhagen Infrastructure Partners to establish $3 billion renewables fund

A Danish investment firm, Copenhagen Infrastructure Partners, is looking to raise $3 billion for a new fund focused on building renewable energy projects from scratch in emerging and middle-income countries, according to reports.

The firm said that its 14-year Growth Markets Fund II had just launched and told Reuters it will target wind and solar power and niche investments such as battery storage and projects that turn electricity into carbon-neutral synthetic fuels, so-called ‘power-to-X’.

According to data firm Preqin, only one emerging markets greenfield renewables fund has raised more than Copenhagen wants to amass, although the 2014 $3.26 billion Guangzhou City Development Industry Fund is focused on China.

Raising more money to developing economies to help them transition to a low-carbon future is a central aim of the COP28 Climate talks in Dubai, but most climate-focused funds have targeted safer, more reliable returns in developed countries.

While a deal to phase out fossil fuels has been hard to agree, more than 60 countries have backed a global agreement to triple renewable energy this decade.

Most of the world’s future emissions will likely come from emerging and middle income countries. They will need $2.8 trillion in investment by 2030 to meet cleaner energy goals including at least tripling renewable capacity, Copenhagen partner and co-head of the fund Niels Holst said.