As per ESG Today, CIP officials stated that the fund targets 3 billion USD in green financing and is expected to bring online some 10 GW of new renewable power capacity.
Christina Grumstrup Sørensen, Senior Partner and founder of CIP, said that "to reach net-zero, we need to bring affordable, reliable, and clean energy to all parts of the world. This fund will be deploying significant private capital and therefore ensure renewable projects in countries where it will contribute to growth and job creation and deliver substantial impact in terms of reducing carbon emissions."
Experts at CIP stated that the funding is required as emissions coming from middle-income markets are expected to grow, while the planet needs to triple renewable capacity by 2030 in order to stay on track for net-zero emissions. To ensure that we reach this goal, they estimate that middle-income and developing countries will need around 2 trillion USD of investments in the field of renewable power just in this decade.
Niels Holst, Partner at CIP and Co-Head of GMF, added that "these middle-income and emerging markets represent not only a mandatory task for the industry – and we believe that they are also very attractive markets for investors seeking exposure to the some of the highest expected growth rates for renewables. They are estimated to account for 25% of global renewable energy capacity by 2050, as economic and demographic growth drives rapidly increasing electricity demand."