The Dutch pension fund ABP has invested €240m in a fund focused on renewable energy in the Asia-Pacific region, with a specific focus on Japan.

The pension fund has invested in PAG Renewables' PAG REN I fund, which has raised around €500m in capital. It plans to invest the money in the development and construction of solar parks in Japan and other countries in the region.

ABP said it expects to receive “good and stable returns for its participants” with the investment as the fund is responding to the large energy needs of Japan, the fifth most energy-consuming country in the world.

Japan currently imports around 90 per cent of the energy it consumes and relies heavily on fossil fuels. However, the Japanese government has ambitious long-term goals for energy production from renewable sources and wants to become less dependent on energy from abroad.

“This investment is a so-called impact investment. These are investments that aim to make a positive, measurable social and environmental impact. In addition to achieving financial returns,” ABP said.

“We aim to invest €30bn in impact investments, of which €10bn will be in the Netherlands. Our investment in the PAG REN I fund contributes to this objective.”

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