Japanese Insurance Giant Invests in Australian Net Zero Infrastructure Fund

Japan’s Dai-ichi Life Insurance Company has invested JPY7 billion (US$50.4 million), in the IFM Net Zero Infrastructure Fund (the Fund), managed by Melbourne-headquartered IFM Investors.

The Fund’s main investment targets are the green and brown field of infrastructure sectors, i.e. renewable energy generation facilities, efficient electricity grids, electric vehicle charging stations, low-carbon alternative fuel facilities, and the carbon dioxide capture and storage facilities in OECD countries including the Asia-Pacific region.

The Fund aims to accelerate the transition to net zero in countries through the construction of such infrastructure, in compliance with Article 9 of the Sustainable Finance Disclosure Regulations.

In addition, IFM, the manager of the Fund, has extensive experience and a proven track record in investing in infrastructure assets and is expected to provide stable sourcing and performance.

In a statement, Dai-ichi Life said it believes that this investment, including its economic impact, will contribute to a wide range of sustainable development goals, such as reducing greenhouse gas emissions, building sustainable cities, and promoting renewable energy and low-carbon alternative fuels.

In March this year, IFM Investors completed the acquisition of a majority interest in GreenGasUSA (GreenGas), a US-based renewable natural gas developer, owner, and operator, IFM Investors’ first investment in the low carbon fuels sector, a core target sector of the fund.

The acquisition secured long-term investment capital for GreenGas to expand its footprint of RNG projects. GreenGas’ key offtake partners include investment-grade commercial & industrial customers, such as Mercedes-Benz, Berkshire Hathaway Energy, and Duke University.