1.
Dirk RÖTTGERS and Aayush TANDON
Green Finance and Investment
Climate Water and Biodiversity Division, Environment Directorate
Green Infrastructure in the Decade for Delivery
ASSESSING INSTITUTIONAL INVESTMENT
@OECD_ENV
#GreenTalks
OECD Green Talks: LIVE
14 January 2021

2.
Overview and Scope
How much can institutional investors invest in infrastructure ?
How much have institutional investors invested in infrastructure,
particularly green infrastructure ?
What are the levers and policy options to shift and scale-up investment
in green infrastructure?
Guiding
QUESTIONS
G20+OECD AllInfrastructure
PensionFunds
Insurers
SWFs
AssetManagers
SCOPE
DATASOURCES
Real
Economy
2
max. USD 11.4 T
USD 1.04 T (all) USD 340 B (green)

3.
How much can Institutional Investors Invest in Infrastructure ?
delineating ‘investable AUM’
*Based on quantitative limits imposed on investment through unlisted funds and direct project-level equity/debt on pension funds and insurance companies.
Caveat: Unlisted funds are used to invest in private assets other than infrastructure. This in effect lowers the investable AUM for infrastructure.
*
3

4.
4
How have Institutional Investors Invested in Infrastructure ?
mapping the current investment landscape
All(includinggreen)
INFRASTRUCTUREINVESTMENT
CROSS-BORDER
SECTORS

5.
Transition to online DATA Explorer

6.
6
How to Shift and Upscale Green Infrastructure Investment ?
levers and policy prioritiesANALYTICALFRAMEWORK

7.
7

8.
CountryDiagnostics
8
SectoralDeepDives
Progress&Update
2022
Outlook
informing mobilisation strategies and tracking progress

9.
Thank you for joining
the discussion!
For more information, contact:
Dirk.Rottgers@OECD.org
Aayush.Tandon@OECD.org
Access the report and data explorer:
oe.cd/green-infra-dfd
@OECD_ENV
#GreenTalks

10.
Annex

11.
11
Institutional Investment in Infrastructure
filling data gaps
Hierarchy of methods
Regression-based predicted investments
Averages based on other
predicted values
Averages based on
available data
Observed
data
Predicted private equity fund commitments
based on AUM, country, sector, fund FE, etc.
Direct equity investment based on predicted
project sizes, avg. gearing ratios and avg. debt
shares
Deals of private equity funds based on the
average of the categories available
Stock-market holdings: No way to impute
unavailable information
Examples

12.
12
|
Fund A’s
weights by
sector and
country of
fund A’s
deals
Observed deal
values of fund
A
All deals
of fund A
Aggregation to
country-sector level
Estimated deal
values of fund
A
Observed
commitments
to fund A
Estimated
commitment
data for fund A
Fund A’s
called
percentages
All
commitm
ents to
fund A
Share of
fund A’s
residual
value
attributed
to investors
Share of
fund A’s
residual
value
attributed
to investors
by sector
and country
of asset
Fund A’s
called RVPI
Step 1 Step 2
Step 3 Step 4

13.
13
Institutional Investment in Infrastructure
investable AUM
Quantitative limits
prescribed
Limits available in
existing OECD work*
Take relevant limits
Look at relevant
regulation/third party
information
Take relevant limits
No limit
prescribed/prudent
person or similar
principle
Look at investment
data and compile
country wise lists of
known PF/IC
Information on
infrastructure allocation
targets known
Take maximum known
infrastructure
allocation target
Take maximum known
infrastructure
allocation (%)
YES NO
YES NO
YES
NO

14.
14
Observed/estimated value of
investor’s investment in asset
Investor commitment in fund (%)
* Residual Value of fund
Observed/estimated value of
investor’s investment in asset
Market cap. of company * shares
held by investor (%)
Observed fund NAV * units held
by investor
Book value of fund’s investment in
asset
Market cap. of company * shares
held by investor (%)
Market value of the fund * sectoral
weight of underlying securities
Unlisted Funds
Direct
Listed Securities
Listed funds
INVESTOR
ASSET
Institutional Investment in Infrastructure
valuation techniques