Norway pension fund KLP has partnered with Macquarie Asset Management to establish a platform that will make investments in green infrastructure debt.
The platform will target investments in debt assets across the solar power, wind power, hydropower, and sustainable energy storage sectors. KLP says it will commit 200 million euros to these investments.
“We perceive the strategy as “dark green” as we will aim to make investments in long-term green investments that are aligned with the EU Taxonomy for Sustainable Activities. We have been very ambitious with regard to fulfilling the EU’s requirements while seeking to ensure that our climate focus does not impair investment performance. The approach with Macquarie Asset Management aims to achieve this by investing in loans with very long tenors, a segment of the market that it is expensive for banks to hold on their books due to high capital charges”, says Schaanning.
Tim Humphrey, Co-Head of Macquarie Asset Management’s Private Credit team, said: “Considerable investment is needed in green infrastructure if we are to mitigate the effects of climate change and accelerate our transition to a Net Zero society and economy. Our partnership with KLP represents an exciting development for the sector and underlines the significant opportunity that exists for institutional investors to help finance the global shift to renewable energy.”