CEFC makes first infrastructure equity commitment
12 April 2018
The Clean Energy Finance Corporation (CEFC) has tipped $150 million into Australia’s largest infrastructure fund to help reduce carbon emissions across airports, ports and electricity infrastructure.
The investment into the $12 billion IFM Australian Infrastructure Fund represents the CEFC’s first equity commitment to the infrastructure sector, and will specifically target emissions reduction and energy efficiency programs at Ausgrid, Brisbane Airport, Melbourne Airport, Port Botany in Sydney and the Port of Brisbane.
“Infrastructure assets are central to our economic and social wellbeing,” CEFC chief executive Ian Learmonth said.
“They are usually large, expensive and built for the long term. It is absolutely critical that the assets of today contribute to the overall emissions reduction task that we are facing.”
He said IFM Investors was a leader in sustainable infrastructure investment, and the commitment inked with the CEFC would see them further emissions reduction and sustainability performance.
“With this investment the CEFC will work with IFM Investors in targeting comprehensive and sustained improvements to the carbon footprint of some of our most important infrastructure assets,” Mr Learmonth said.
“We will also work with IFM Investors to enhance benchmarks and transparency around infrastructure emissions, so that we can deliver a step change in the emissions profile of our national infrastructure.”
IFM Investors is owned by 27 of Australia’s industry super funds, investing on behalf of six million Australians and, globally, 15 million pension fund members.
IFM Investors global head of infrastructure Kyle Mangini said the company was set to boost its sustainability credentials.
“With the support of the CEFC, we will accelerate our program of measuring, reporting, and decreasing emissions from Australian infrastructure assets,” he said.
“The fact that this is the first commitment by the CEFC to an infrastructure fund reflects our alignment in a cleaner future. Today, I invite other investors in infrastructure to follow our lead and make a difference.”
CEFC infrastructure lead Julia Hinwood said expected initiatives included onsite solar PV and battery storage solutions, electric vehicles and smart management systems.
“This is about investing in global best practice infrastructure to support its important economic potential while proactively addressing the emissions challenge,” she said.