investor allocations

In brief: CDC increases climate allocation to 30%

UK DFI’s five-year commitment – announced by prime minister Boris Johnson – follows CDC’s 5% allocation in 2016.

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CDC Group has allocated 30 percent of its investments over the next five years to climate finance, UK prime minister Boris Johnson announced last week.

This marks a significant increase since 2016, when the UK’s development finance institution had allocated 5 percent of new investments to climate finance. Earlier this year, CDC invested in Berkeley Energy’s second Africa renewable energy fund, which has raised €130 million.

The institution invested $1.57 billion in 2020, 17 percent of which was in externally managed private equity funds and 30 percent of which was in direct equity. Its portfolio was valued at $7.1 billion that year.

In July, the UK government committed to invest £11.6 billion over the next five years to support the energy transition via the international climate finance fund.