NETHERLANDS - ABP and PGGM have taken stakes in the world's largest private sector carbon fund, Climate Change Capital (CCC).
The fund will invest in projects in developing countries aiming to reduce greenhouse gas emissions. ABP confirmed it had invested e275m in the fund. The fund is hoping to raise in the region of $1bn. The involvement of the pension funds is seen as an endorsement of the fledgling sector.
CCC’s fund’s objective is to generate attractive levels of returns by acquiring a diversified portfolio of different types of carbon assets and derivatives. The fund also has the power to invest in projects and companies which develop and generate GHG reductions.
James Cameron, vice-chairman of Climate Change Capital, said: “This is further proof that the so-called 'green economy' has arrived, as the world realises that combating global warming is an economic opportunity as well as a necessity. The profile of the investors backing this new asset class, created due to the Kyoto progress in the development of the carbon market.”
This week's edition of Professional Pensions is out now.
Ben Gunnee reflects on 2018 and talks about the Fiduciary Management trends to keep an eye on in 2019
Lloyds Banking Group secured 630,000 new pension customers last year, according to its 2018 annual results.
Guy Opperman has rejected calls to speed up changes to auto-enrolment (AE) despite increasing pressure to boost contribution rates and overall savings pots.