Green infrastructure
Norfund invests in green infrastructure to improve essential infrastructure services.
Green Infrastructure is Norfund’s newest investment area. These investments contribute to sustainable development of cities and towns, reduce environmental harm and improve people’s standards of living.
Renewable Energy
Financial Inclusion
Scalable Enterprises
Green Infrastructure
waste recycled in developing countries
of world population will live in cities by 2030
Why invest in green infrastructure?
The urban population is projected to reach 5 billion by 2030. Cities around the world face common challenges, including congestion, inadequate access to basic services such as electricity, water, and sanitation, a shortage of adequate housing, deteriorating infrastructure, and rising air pollution.
Currently, 883 million people live in slums globally. However, the challenges of urbanization can be addressed in ways that enable cities to grow sustainably, improving resource efficiency, reducing pollution, and alleviating poverty. Investments in projects and private companies in the waste management sector can play a key role in supporting this continued and sustainable urban growth.
To guide our efforts and clarify how our investments contribute to long-term development, Norfund has developed a Theory of change for investments in this sector. The theory of change outlines the problem we aim to address, the inputs we provide and the steps through which long term impact is achieved.
Our ambitions
In our strategy 2023-2026, our defined ambitions are:
water and wastewater treatment capacity enabled
waste treatment capacity enabled
Norfund’s strategy
Green Infrastructure’s aim is to improve essential infrastructure services in:
- Waste management, including waste-to-energy
- Water supply and sanitation, including waste-water treatment
The priority is direct investments in Sub-Saharan Africa, South and Southeast Asia, however investments into funds is also explored to gain access to otherwise difficult markets or to build experience and network.
Investments in this sector requires strong technology and market knowledge to identify commercially viable projects in sectors of limited maturity.
Norfund therefore prefers to invest in collaboration with experienced industry partners who are able to transfer best practices to investee companies. Local or regional smaller players are also considered.
What we offer
Norfund is an active minority investor. We offer risk capital through equity, loans and funds to companies that meet our requirements.
To maximize commercial and developmental success, Norfund strives to be a value adding owner beyond the capital investment. Norfund’s investment teams have extensive experience in project development and governance and work closely with partners to develop companies. Norfund takes a position as an active owner and requires a board seat in equity investments. With more than 20 years’ experience of investing in developing countries, Norfund continuously builds and develops the expertise needed to invest and manage risks in order to succeed as an investor.
Partnerships
Norfund invests with or via partners to benefit from their knowledge and expertise. We often prefer to partner with large, well-known and respected companies with a local presence and a long-term horizon, whose interests align with those of Norfund.
