Folksamgruppen invests SEK 3 billion in Copenhagen Infrastructure Growth Markets Fund II. The fund invests in the energy transition in the form of onshore and offshore wind power assets, solar parks and energy storage in more mature growth markets and growing middle-income countries. Growth economies’ demand for electricity is expected to increase by 3-4 times until the year 2050. CI Growth Markets Fund II is expected to add 10 GW of green energy to the electricity grid and reduce over 10 million tons of carbon dioxide emissions per year.
– The manager specializes in successfully developing large-scale projects in renewable energy and focuses in this fund on emerging economies such as Chile and Vietnam, countries that today largely depend on imports of fossil fuels for their energy supply. This type of investment gives these economies cheaper sources of energy, greater independence in energy supply, and each kroner invested makes almost three times the difference in reduced carbon dioxide emissions compared to if the investment had been made in more developed markets. The investment diversifies the portfolio and contributes to increasing the expected return, says Rebecka Elkert, Head of Alternative Investments in Folksamgruppen.
Folksamgruppen has a relationship with the manager since the investment in Copenhagen Infrastructure V, which was carried out in autumn 2023.
Christina Grumstrup Sørensen, Senior Partner at Copenhagen Infrastructure Partners says:
– We are grateful that Folksamgruppen has chosen to expand its partnership with CIP by investing in Growth Markets Fund II. Developing large-scale projects in renewable energy is especially important in fast-growing middle-income countries where energy demand is high and cost-effective renewable technologies make a big difference. Growth Markets Fund II is expected to add 10 GW of state-of-the-art green energy to the grid, avoid over 10 million tonnes of carbon dioxide emissions per year while promoting both local investment and job creation and delivering an attractive risk-adjusted return to our investors.
Investing companies in the Folksam group are:
KPA Occupational pension insurance SEK 2,100 million
Folksam Occupational pension SEK 800 million
Konsumentkooperationen’s pension foundation SEK 100 million
