One of the country\u2019s largest infrastructure investors has ruled out investing in any new thermal coal assets, after announcing a $C2.8 billion ($2.9 billion) acquisition of an energy-efficient heating operation in Canada.<\/p>\n
IFM Investors, which manages $148 billion for Australian superannuation funds, announced plans on Wednesday to acquire a 50 per cent stake in Canadian heating and cooling operator Enwave in a joint venture with the Ontario Teachers\u2019 Pension Plan Board.<\/p>\n
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IFM head of infrastructure Kyle Mangini says the $148 billion fund will not invest in new thermal coal projects. <\/span><\/p>\n IFM head of global infrastructure Kyle Mangini said the deal was part of the \u201ctremendous shift\u201d towards sustainability, adding the fund would not invest in new thermal coal projects.<\/p>\n \u201cI don\u2019t think anybody believes coal has got a long lifespan ahead of it,\u201d Mr Mangini said. \u201cHow long is somewhat up for debate. But you\u2019ll see that fuel being eased out of the mix and the continued progression towards more renewable energy.<\/p>\n \u201cWe certainly wouldn\u2019t invest in any new coal.\u201d<\/p>\n Mr Mangini said in many cases, renewable energy was less expensive than generating energy from fossil fuels. \u201cWhen the economics work, things tend to move much more smoothly than when government subsidies are required.\u201d<\/p>\n The Enwave deal follows a bid made last week by IFM Investors to buy a 22.69 per cent stake in Naturgy, Spain\u2019s largest gas distribution and third largest electricity distribution networks.<\/p>\n IFM is one of the growing number of Australian fund managers that has committed to achieving net zero emissions across its investment portfolio by 2050.<\/p>\n Mr Mangini said the Naturgy deal would not impact IFM\u2019s net zero target, but could not comment on whether he would pressure the company to transition to greener operations.<\/p>\n \u201cIt was something we focused on very closely to make sure we were comfortable that it was in line with the goal,\u201d he said. \u201cThey have a very large renewable book and are progressing in that direction.\u201d<\/p>\n Mr Mangini added he considers gas an important energy source to support the transition to renewables. \u201cYou can\u2019t move down the renewable path without that back-up.\u201d<\/p>\n IFM chief executive David Neal, who replaced longstanding CEO Brett Himbury last year, announced plans to pour billions of dollars into Australian infrastructure projects to kickstart the local economy following the COVID induced recession.<\/p>\n Mr Mangini said IFM had no local renewable energy deals in the pipeline, but added it \u201cmade sense\u201d for extensive investments in the sector. \u201cGiven this place is blessed with some pretty strong dynamics in that regard, I think you will continue to see a fair amount of activity in that space.\u201d<\/p>\nMost Viewed in Business<\/h2>\n