Caisse de Pensions de l’État de Vaud: The AIP II infrastructure fund, in which the CPEV invests, helps finance a project contributing to the decarbonization of the steel industry

21 February 2024

The AIP II infrastructure fund, which includes CPEV among its investor pool, has already financed several projects specializing in the energy transition. This fund is now helping to finance the world’s first large-scale “green” steel factory in Sweden.

This factory will produce steel while reducing CO2 emissions by up to 95% compared to steel produced in a traditional blast furnace. This result is achieved by replacing coal with green hydrogen, which will be produced on site using the largest electrolyser in Europe. All stages of steelmaking will be powered exclusively by electricity from renewable sources.

According to AIP, the decarbonization of the steel industry is an important step in limiting the effects of climate change, as the sector generates around 8% of all CO2 emissions and 25% of industrial emissions in the EU.

As a reminder in 2020, Retraites Populaires, the Caisse de pensions de l’Etat de Vaud (CPEV), the Caisse intercommunale de pensions (CIP) and Profelia, as well as other French-speaking institutional investors, joined forces with major pension funds. Nordic pensions to invest in the infrastructure fund linked to the energy transition AIP Infrastructure.

Source: Caisse de Pensions de l'État de Vaud