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.  

What we invest in

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.