Record greenhouse gas emissions in combination with energy-intensive economic growth has resulted in a high need for renewable energy in emerging markets. These market dynamics have led to a compelling investment opportunity.
Climate Investor One offers an attractive investment opportunity for investors seeking exposure to well-structured projects and well-diversified emerging markets infrastructure assets.
The combination of high levels of energy demand and the challenges presented by climate change has resulted in renewable energy becoming an important power generation solution for emerging markets' governments. This has created a compelling investment opportunity driven by macro-economic and geo-political investment drivers, including; expected high growth of emerging markets; the need for new power generation capacity; abundant renewable energy resources; attractive risk-adjusted returns; proven and competitive technologies; and improved regulatory frameworks and policy support.
The principal objective of Climate Investor One is to develop projects and achieve medium to long-term investment returns through private sector participation in a portfolio of renewable energy assets in emerging markets.
Recent years have seen more developing countries establishing supportive regulatory frameworks for private investment in renewable energy. However, finance remains scarce, requires multiple providers of capital, and the use of complex financing arrangements often leading to extensive delays in the development period, higher costs, and sometimes outright failure.
By combining several innovative investment funds into one, Climate Investor One helps early-stage renewable energy projects achieve bankability quicker, provides a full lifecycle financing solution, and mobilises capital into emerging markets at a more attractive risk profile to institutional investors.