Climate change is driving capital allocation. Green AIFs (often Category I Infrastructure funds) focus exclusively on renewable energy projectsÑsolar parks, wind farms, and hydro plants.
These assets often come with long-term Power Purchase Agreements (PPAs) with governments, ensuring guaranteed revenue for 20-25 years. This makes Green AIFs a unique hybrid: they offer the stability of a bond-like yield with the “feel-good” factor of impact investing. It is a way to profit from the inevitable global transition to net zero.
