Infra to take lion’s share of €1trn-plus European ESG assets

PwC projects Article 8 and 9 infra funds could amount to €437bn by 2025 under its best-case scenario.

Fund assets compliant with Article 8 and 9 of Europe’s Sustainable Finance Disclosure Regulation are set to grow to between €775.7 billion and €1.2 trillion in value by 2025, with a minimum of €481.1 billion in newly raised capital, according to a report by PwC.

PwC’s report sets out minimum or ‘base case’ and maximum or ‘best case’ scenarios of the value of privately owned ‘ESG’ assets in Europe – assets that qualify under Articles 8 or 9 of the EU’s SFDR by 2025.

These assets are set to make up between 27.2 percent (base case) and 42.4 percent (best case) of Europe’s total private assets.

Infrastructure will see the largest market share dedicated to Article 8 and 9 fund assets, with a projected 40.6 percent, valued at €251.6 billion, in PwC’s base case scenario.

At least 33.7 percent of real estate, 21.3 percent of private debt and 20.7 percent of private equity assets will be Article 8 or 9 qualifiers.