No more trade-offs: Green investment can deliver competitive returns

Note: This Fund in Focus was filmed on September 12, 2024

The Macquarie Energy Transition Infrastructure Fund (METI) presents a significant investment opportunity, focusing on private infrastructure investments that support the global energy transition. 

The Fund offers Australian wholesale investors access to a portfolio that aims to combine yield and growth with the defensive characteristics typically seen with infrastructure. METI invests in a diversified range of energy transition assets, including wind, solar, and battery storage, and aims to contribute to the shift towards net-zero emissions.

Macquarie Asset Management, a global leader in infrastructure management with over $900 billion in assets under management, emphasises the scale of the opportunity in clean energy.

It is estimated that US$190 trillion will be required by 2050 to meet global net-zero targets, driven by increasing electricity demand, particularly due to digitisation. That equates to annual investments of US$6.7 trillion, with renewables like wind and solar offering the lowest-cost electricity generation for 90% of global demand.

METI focuses on the decarbonisation of electricity, targeting investments in technologies that power the energy transition, with a near-term focus on wind, solar, and batteries. Over time, the fund aims to expand into decarbonising transport and industry as markets evolve. The fund's portfolio currently includes more than 100 energy transition projects that do work across 11 countries and use various technologies.

An example of METI's approach is its investment in Aula Energy. This Macquarie-created business manages renewable energy projects across Australia, comprising wind, solar, and battery storage, representing a development portfolio of 3.7 gigawatts of capacity.

METI provides investors with an opportunity to benefit from stable cash flows from operating assets and the upside of value creation from development assets, with Macquarie's view being that there doesn't necessarily need to be a trade-off between green credentials and investment returns. Macquarie believes that METI is positioned to capitalise on the rapidly growing global green energy infrastructure market.

Time codes

0:09 - Intro and the benefits of METI
1:35 - About Macquarie Asset Management
3:05 - The size of the opportunity in green infrastructure
4:43 - Wind, solar, and global electricity demand
6:07 - How METI invests
7:26 - A real-life example: Aula Energy

Managed Fund

Macquarie Energy Transition Infrastructure Fund (METI)

Alternative Assets

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The Macquarie Energy Transition Infrastructure Fund is focused on private energy transition infrastructure investments. The Fund aims to deliver both income and long-term capital growth to investors, through exposure to technologies that support the global energy transition.

Learn more here.

The Macquarie Energy Transition Infrastructure Fund is only open to investment by Australian wholesale clients (as defined in section 761G of the Corporations Act).