Copenhagen Infrastructure Partners (CIP) has unveiled its Growth Markets Fund II (GMF II) at the 2023 United Nations Climate Change Conference (COP 28) in Dubai.
This groundbreaking fund, with a target size of USD 3 billion, is poised to become the world’s largest greenfield renewable energy investment fund focused on selected high-growth middle-income markets across Asia, Latin America, and EMEA.
GMF II aims to champion offshore and onshore wind, solar PV, energy storage, and Power-to-X projects in these key regions. With an anticipated investment of over USD 10 billion, the fund is slated to facilitate the development of more than 10 GW of new renewable energy capacity, a crucial step towards global sustainability.
Christina Grumstrup Sorensen, Senior Partner and founder of CIP, stressed the critical need to bring clean, affordable, and reliable energy to every corner of the world to achieve net-zero targets. She highlighted the significance of deploying substantial private capital to drive renewable projects in high-growth middle-income countries, catalyzing growth, job creation, and impactful reduction of carbon emissions.
Niels Holst, partner at CIP and co-head of GMF, emphasized the attractiveness of these markets for investors seeking exposure to high expected growth rates in renewables. These regions are projected to account for 25 percent of global renewable energy capacity by 2050, driven by rapid economic and demographic expansion leading to soaring electricity demand.
Ole Kjems Sorensen, Partner at CIP and co-head of GMF, outlined the fund’s approach to create excess returns while mitigating risks, leveraging their proven greenfield and industrial investment strategy. With an existing portfolio surpassing the target fund size, the fund is poised to be a global catalyst in the green and just transition, paving the way for substantial emissions reduction, clean energy provision for millions of homes, and the creation of over 100,000 full-time equivalent (FTE) jobs worldwide.
GMF II’s focus on 15 selected high-growth middle-income markets across continents such as India, Vietnam, Philippines, Mexico, and South Africa underscores its commitment to harnessing the renewable potential in regions with robust fundamentals for sustainable development. These markets, expected to account for a quarter of global installed renewables by 2050, present substantial opportunities for offshore wind expansion, projected to grow around 50 times from 2022 to 2035, catalyzing the green transition in these regions.
With a diversified portfolio exceeding USD 5 billion in potential commitments and a dedicated team of over 70 professionals, GMF II is poised to transform the renewable energy landscape, building on CIP’s track record and experience in greenfield industrial value creation. The fund’s launch stands as a testament to CIP’s commitment to fostering sustainable energy solutions and addressing the pressing global challenge of climate change.