The Folksam Group, including Sweden's KPA Pension, is set to invest SEK 2.2bn in a new financing structure linked to Copenhagen Infrastructure V, targeting onshore and offshore wind development, solar parks and energy-storage assets.

Of the total commitment, KPA Pension will invest SEK 1.5bn, which the group said is expected to deliver “good return potential” alongside a strong climate focus.

Indeed, the investment will support selected projects within Copenhagen Infrastructure V, an infrastructure core fund with a geographic scope that covers Western Europe, North America and developed parts of Asia.

Folksam Group head of alternative investments, Rebecka Elkert, said the approach allowed the group to “cost-effectively and quickly put growing capital to work within an already analysed and proven strategy”, adding that participation in larger renewable-energy projects would help strengthen energy security while generating competitive returns.

Previous funds managed by Copenhagen Infrastructure Partners (CIP) with similar mandates have outperformed their return targets.

Indeed, Copenhagen Infrastructure V, which has reached €12bn in commitments to date, counts several major institutional investors among its backers.

CIP has set comprehensive sustainability objectives for the infrastructure fund, including an ambition to add around 20GW of renewable capacity globally.

This is expected to contribute to an estimated reduction of 15 million tonnes of CO₂ emissions, according to the firm.

Wigge & Partners advised the Folksam Group on the investment.

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