State Policy and Private Equity Funds in the Context of Financing Sustainable Renewable Energy (Środkowoeuropejskie Studia Polityczne)

Summary

• Copenhagen Infrastructure Partners manages 12 investment funds with total capital exceeding €30 billion from over 180 institutional investors worldwide.p.13
• The Vineyard Wind offshore project in the United States features an installed capacity of 800 MW and a total estimated investment cost of $2.8 billion.p.14
• The average share of renewable energy consumption across the European Union was 23.8% in 2023, ranging from 15.2% in Hungary to 43.3% in Latvia.p.11
• The Changfang and Xidao offshore wind farm project in Taiwan involved an investment of approximately $3 billion to install nearly 600 MW of capacity.p.14

Key insights

1. Private equity funds play an increasingly crucial role in mobilizing private capital to help governments meet CO2 emission reduction targets.p.1
2. A 2021 survey showed that 65% of private equity respondents had established a responsible investment policy, while 72% systematically screen prospective portfolio companies for ESG risk.p.7
3. MidEuropa committed to a target of reducing its portfolio greenhouse gas emissions by 42% by 2030.p.7
4. The total share of private equity investments directed to the consumer sector fell below 10% in 2023 in both Europe and the US, down from 30% in Europe in 2016.p.10
5. BlackRock managed over $1 trillion in sustainable and transition investment strategies in 2024 before departing from the Net-Zero Asset Managers initiative.p.12
6. The 800 MW Vineyard Wind offshore wind project is expected to reduce CO2 emissions by more than 1.6 million tons annually.p.14
7. Hydrogen pipelines on offshore energy islands offer significant transport cost savings, costing roughly 20% of high-voltage direct current cables.p.15