Copenhagen Infrastructure Partners (CIP) unveiled its Growth Markets Fund II (GMF II) at the 2023 United Nations Climate Change Conference (COP 28) in Dubai. This new fund, with a target size of USD 3 billion, aims to develop offshore and onshore wind, solar PV, energy storage, and Power-to-X projects in select high-growth middle-income markets across Asia, Latin America, and EMEA. Expected to be the world’s largest fund focused on greenfield renewable energy investments in these markets, GMF II is set to deliver over USD 10 billion in capital investment, facilitating the creation of more than 10 GW of new renewable energy capacity.
Christina Grumstrup Sรธrensen, Senior Partner and founder of CIP, emphasized the fund’s role in deploying significant private capital to drive renewable projects in high-growth middle-income countries. Recognizing the escalating carbon emissions from middle-income markets, GMF II seeks to contribute substantially to global efforts for carbon reduction, supporting the transition to net-zero.
Niels Holst, partner at CIP and co-head of GMF, highlighted the attractiveness of these markets for investors, estimating that they could account for 25% of global renewable energy capacity by 2050. GMF II adopts CIP’s proven greenfield and industrial investment approach, aiming to create excess returns while mitigating risks.
The fund’s existing portfolio positions it to potentially reduce greenhouse gas emissions by over 10 million tonnes annually, power more than 10 million homes with clean energy, and generate over 100,000 full-time equivalent (FTE) years globally. GMF II’s launch adds to CIP’s successful year in 2023, including the first close of Copenhagen Infrastructure V at nearly EUR 6 billion and final close of the Advanced Bioenergy Fund I and Green Credit Fund I at a combined EUR ~2 billion. GMF II marks CIP’s 12th fund, reflecting its commitment to driving the green and just transition globally.
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