Hong Kong monetary authority anchors actis’ Asia climate strategy to support decarbonisation in Asia
LUXEMBOURG, HONG KONG, 11 November 2024: Actis, a leading global investor in sustainable infrastructure, Hong Kong Monetary Authority (HKMA) and other investors have closed the Actis Asia Climate Transition fund, which has raised US$560 million for climate transition investments across Asia.
The Hong Kong Monetary Authority anchored the strategy as part of its commitment to catalyse climate transition investing across the region. The Actis Asia Climate Transition fund was established to meet investor demand for a SFDR Article 9 investment strategy, focused on net zero and decarbonisation assets.
Actis, together with HKMA, saw the opportunity to create a bespoke and targeted investment vehicle to leverage the pertinent need for decarbonisation. Actis believes that transitioning Asian economies to net zero is vital to achieve global climate targets; Asia produces over 50% of global CO2 emissions, represents more than 50% of the world’s population and US$93 trillion is required to finance energy transition in Asia to 2050.[1]
In Actis’ view, the continent’s role at the forefront of global industry means that the climate battle could be won or lost in Asia. The Actis Asia Climate Transition strategy will seek to invest $100-150 million equity cheques in assets supporting climate solutions, including energy efficiency, smart grids, district energy and sustainable transport.
Asanka Rodrigo, Partner at Actis, said: “We will invest in Asian companies focused on decarbonisation and climate solutions with the aim of making the consumption of energy more efficient and delivering sustainable transportation solutions. We believe that Actis is ideally positioned to do this building on our extensive experience in the energy and infrastructure sectors.”
Shami Nissan, Partner and Head of Sustainability at Actis, commented: “With half the world’s population, rapid industrialisation, carbon intensive grids and accounting for half of global emissions, Asia is absolutely vital to our ability to deliver a net zero future. We are delighted to be partnering with a long-term strategic investor of Actis to support this need, through a SFDR Article 9 investment strategy.”
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[1] Asia’s net-zero transition: Opportunity and risk amid climate action | McKinsey