Increased energy demand counters Trump's pro-fossil fuel strategies, according to APG's infrastructure team.
Headline: Dutch Pension Funds Continue Investment in Renewable Energy Despite US Shift Towards Fossil Fuels
In a surprising turn of events, the US President has declared an "energy emergency" and is bolstering fossil fuel resources, while neglecting solar, wind, or other clean energy technologies. However, this political shift in the US has not deterred Dutch pension funds like APG from investing heavily in renewable energy.
APG, the investment manager for ABP, manages over €500bn for its pension fund clients, including one of the largest pension funds in the world, ABP. Despite the political climate in the US, APG recently committed over $650 million to Octopus Australia’s renewable energy platform in 2025. This commitment reflects strong confidence in the long-term demand and returns from renewables such as wind, solar, and battery storage.
Jan-Willem Ruisbroek, managing director at APG, believes that the growth trend of renewable energy will continue and even accelerate in the coming decades. This aligns with APG's Climate Action Plan to achieve net zero portfolio emissions by 2050 and grow investments in climate solutions.
The growth in renewable electricity demand in the US is supported by factors beyond just policy, including technological advancements and data centre expansion. Data centres, essential for supporting economic growth, enabling businesses, and maintaining the US's leadership in innovation, including AI advancements, are a significant driver of electricity demand growth in the US.
Data centre deployment, driven by AI applications, is projected to account for up to 9% of US electricity generation annually by 2030, up from 4% in 2023. Meeting the rising energy demand in a cost-efficient manner strongly favours investment in renewable energy over building new fossil fuel-fired power plants, as the cost of renewable energy production is often lower than the cost of fossil fuel alternatives, as demonstrated in Texas.
While the new US president has temporarily suspended all clean energy development on federal land, most renewable energy targets and standards are set at the state level. States are expected to continue implementing strong policies that support their clean energy and net-zero targets.
Despite facing pushback, Europe's largest pension fund, ABP, has ramped up its investments in renewable infrastructure and plans to continue doing so. Dutch pension fund investments overall rose by €10 billion in Q2 2025, indicating continued robust investment activity.
In summary, although the US political environment has shifted towards fossil fuels, Dutch pension funds like APG remain heavily invested in renewables and continue to expand these investments globally as part of their long-term climate and financial strategies. The continued expansion of renewables is driven by both environmental motives and rational economic considerations.
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