Swedish pension giant invests in energy transition fund from CIP

Folksam Group has invested SEK 3bn in a fund focusing on energy transition in emerging countries that are currently largely dependent on fossil fuel imports. 

The Folksam Group is investing SEK 3bn (EUR 260.68m) in a fund that invests in wind power assets, among others. | Photo: Johan Nilsson/TT
The Folksam Group is investing SEK 3bn (EUR 260.68m) in a fund that invests in wind power assets, among others. | Photo: Johan Nilsson/TT

This week, one of Sweden’s biggest pension firms, the Folksam Group, announced that it is investing SEK 3bn (EUR 260.68m) in a fund from Copenhagen Infrastructure Partners (CIP), investing in the energy transition. 

Copenhagen Infrastructure Growth Markets Fund II, as the fund is called, invests in onshore and offshore wind power, solar parks and energy storage in more mature emerging markets and growing middle-income countries. 

“The manager specializes in successfully developing large-scale renewable energy projects and in this fund focuses on emerging economies such as Chile and Vietnam – countries that are currently largely dependent on fossil fuel imports for their energy supply,” writes Rebecka Elkert, Head of Alternative Investments at Folksam, in a press release. 

“This type of investment provides these economies with cheaper energy sources, greater independence in energy supply and every krona invested makes almost three times the difference in reduced carbon emissions compared to if the investment had been made in more developed markets. The investment diversifies the portfolio and helps to increase the expected return,” she adds. 

A total of three companies in the Folksam Group have invested. 

KPA Tjänstepensionsförsäkring has invested SEK 2.1bn (EUR 182.46m), Folksam Tjänstepension SEK 800m (EUR 69.51m), and Konsumentkooperationens pensionsstiftelse SEK 100m (EUR 8.68m).

(This article was provided by our Swedish sister media, FinansWatch. Translated using DeepL with additional editing by Katrine Gøthler)

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