Australian superannuation funds IFM Investors and Aware Super have pledged significant investments for the UK's energy transition, contributing to a GBP 29.5 billion investment package announced by UK Prime Minister Rishi Sunak. IFM Investors is set to invest GBP 10 billion in infrastructure and energy transition projects over the next four years, while Aware Super commits more than GBP 5 billion for projects spanning energy transition, affordable housing, life sciences, innovation, technology, and digital infrastructure.
IFM Investors is expected to finalize a memorandum of understanding (MoU) with the UK's Department for Business and Trade to identify commercially viable investment opportunities. The MoU aims to facilitate collaboration between IFM and UK Government departments, providing insights into policy priorities and ongoing developments in infrastructure and energy transition sectors. This builds on IFM's previous commitment to invest GBP 3 billion in its UK-based infrastructure portfolio assets.
Deepa Bharadwaj, Head of Infrastructure Europe at IFM, highlighted the UK's steps to encourage long-term investment in infrastructure, particularly in the energy transition sector, including offshore wind, solar, battery storage, renewable fuels, and pumped hydro.
The partnership may support ventures like Nala Renewables, a joint venture between IFM Investors and Trafigura, which seeks investment opportunities in the UK as part of its strategy to achieve 4 GW of renewable capacity by 2025.
IFM Investors, with over AUD 217 billion under management as of June-end, entered the UK market in 2006 and continues to demonstrate a commitment to supporting the country's transition to sustainable infrastructure. Aware Super's commitment aligns with its broader strategy of investing in projects contributing to positive societal and environmental outcomes.
