IFM Australian Infrastructure Fund is working with the Clean Energy Finance Corporation (CEFC) to reduce carbon emissions at some of the nation’s infrastructure assets across ports, airports and electricity infrastructure.
In its first equity commitment to Australia’s diversified infrastructure sector, the CEFC is investing $150 million in the IFM Investors’ managed IFM Australian Infrastructure Fund, which will target emissions reduction and energy efficiency initiatives across assets including Ausgrid, Brisbane Airport, Melbourne Airport, Sydney’s Port Botany and the Port of Brisbane.
“With this investment the CEFC will work with IFM Investors in targeting comprehensive and sustained improvements to the carbon footprint of some of our most important infrastructure assets,” said CEFC CEO Ian Learmonth. “We will also work with IFM Investors to enhance benchmarks and transparency around infrastructure emissions, so that we can deliver a step change in the emissions profile of our national infrastructure.”
IFM Investors, owned by 27 of Australia’s industry superannuation funds, invests on behalf of 6 million Australian workers and approximately 15 million pension fund members globally.
According to Australia’s National Greenhouse Gas Inventory, infrastructure-related emissions account for more than half of Australia’s total greenhouse gas emissions, mainly from the electricity sector (35 percent) and the transport sector (18 percent).
The CEFC estimates that just a 5 percent improvement across the assets in the portfolio would abate almost 69,000 tons of CO2-e annually. This is equivalent to removing 14,775 cars from the road each year, or providing electricity to about 7,450 homes a year.
CEFC infrastructure lead Julia Hinwood said initiatives may include installing on-site solar PV and battery storage solutions and converting to electric vehicles. They are also likely to involve using smart management systems, which monitor asset performance and assist with reducing energy consumption and optimizing logistics and supply chains.
This equity investment builds on the CEFC’s extensive record in infrastructure development, including up to $150 million in debt finance to the Moorebank Logistics Park intermodal terminal in southwestern Sydney. The CEFC is also an investor in energy-related infrastructure, financing innovative large-scale solar, wind and energy storage developments Australia-wide.
