Stockholm (NordSIP) – On the eve of the COP26, Triodos Investment Management announced the launch of a new renewable energy emerging markets fund. The Triodos SICAV II – Triodos Emerging Markets Renewable Energy Fund was worth US$29 million at its launch and aims to increase access to renewable energy in emerging markets.
According to Triodos Investment Management, the fund is motivated by three main challenges. On the one hand, there’s an increasing need to upgrade the global energy production capacity to satisfy the demand. Meanwhile, we need to create access to reliable energy, particularly in economically less developed countries around 800 million people still lack access to energy. Finally, the need for reducing CO2 emissions from energy production to meet global climate goals motivates the focus on renewable energy.
“Lack of access to modern energy technology limits income generation, blunts efforts to escape poverty, affects the health of women and children and contributes to deforestation and climate change. With the launch of this new fund, we aim to catalyse private sector investments in renewable energy in emerging markets, which will accelerate the global clean energy transition and improve access to clean energy in developing countries,” Angeles Toledo, Fund Manager of Triodos Emerging Markets Renewable Energy Fund says.
The alternative investment fund (AIF) is a sub-fund of Triodos SICAV II is a semi open-ended fund for professional investors traded and is traded on a monthly basis, at net asset value. It invests in long-term senior debt to utility-scale wind, solar and run-of-the-river hydro projects to facilitate the energy transition in emerging markets. The fund also finances commercial and industrial initiatives and innovative projects that reach individuals, such as mini-grids. In addition, the fund has a limited allocation to invest in high-impact energy transition funds, with a focus on the development stage of new renewable projects.