Tom Sanzillo for Corporate Knights:
IEEFA published a report this last week that highlights how Norway is at a historic crossroads in how it manages some of its vast national wealth bound up in the Government Pension Fund Global (GPFG).
Indeed, GPFG is facing an unusually opportune moment this summer, as Parliament considers whether to enact a mandate that would have the fund put up to 5 per cent of its $900 billion in wealth into unlisted infrastructure holdings.
Such a move would allow the fund to capture value and reap stable returns especially from the fast-growing global renewable energy sector.
The fund would be joining an investment trend that is gaining momentum – 62 per cent of sovereign of wealth funds held infrastructure investments in 2016 and an additional 7 per cent were considering doing so.
Our report outlines how GPFG can proceed and describes the opportunity in renewable-energy infrastructure in detail. One of our core findings is that assets bought and sold across this space now—in wind farms and solar plants – yield returns and retain value.