Canada’s CPPIB Boosts Investment in Renewables 100-Fold Since 2016

November 11, 2019 | ESG and Sustainability

The Canada Pension Plan Investment Board’s (CPPIB) also more than doubled its renewable energy investments last year.

As of June 30, the CPPIB revealed it had $3.02 billion invested in renewable energy businesses. This amount is twice what it was last year. It’s also more than 100 times the amount it invested in the renewables space in 2016.

CPPIB – Climate change leader

“Over the past year, we advanced our goal to be a leader among asset owners in understanding the risks posed and opportunities presented by climate change,” the fund said.

CPPIB simultaneously released its “2019 Sustainable Investing Report.”

The fund’s focus areas are climate change, water, human rights, executive compensation, and board effectiveness.

It was the world’s first pension fund to issue green bonds in 2018. In 2019, it issued its first euro-denominated green bond.

CPPIB – Renewable investing – global

According to Martin Laguerre, Senior Principal, Power & Renewables group, three key trends are working in renewables.

  • Renewable energy markets are growing well globally and are being adopted widely. They also now attract a different cost of capital.
  • There are opportunities to buy good projects and quality companies. These businesses are competitive and do not need subsidies, such as in the past.
  • Due to transparent pricing, large utilities are bidding at auctions on the prospect of earning attractive risk-adjusted returns.

CPPIB – Renewable investing – Europe

Bill Rogers, Senior Principal, Power & Renewables group, had the following comments about Europe, the most matured renewable energy market in the world.

  • Size of market stabilizing at US$80 – US$100 billion worth of investments annually.
  • Supportive regulatory frameworks pan-European-wide, and now in the UK
  • Falling costs – Solar costs have dropped over 90% since 2010, and, similarly, the cost of wind energy generated has dropped by more than 50% over the same period.
  • In wind energy, the latest turbines can generate energy at very competitive costs. This trend can open up a market valued at nearly US$500 billion over the next 10-15 years.
  • CPPIB is preparing to enter this market by entering a [50:50] partnership with Enbridge.

CPPIB – statistics

  • Fund value: $392 billion
  • Cumulative net income after all costs: $247.6 billion
  • 10-year net nominal annualized rate of return: 11.1%
  • 5-year net nominal annualized rate of return: 10.7%

[Related Story:  CPPIB to Buy Pattern Energy Group for $2.63 Billion ]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…