The September edition of the LSFI Newsletter features an interview with Aurélien Roelens, Managing Director at Cube Infrastructure Managers.

He shares his perspectives on why private infrastructure is central to the sustainability transition, how climate risk is reshaping investment decisions, and where European infrastructure investing is headed next.

LSFI: Infrastructure investments are often presented as a particularly effective way of translating sustainability objectives into tangible outcomes.

What makes private infrastructure uniquely positioned to contribute to the environmental and social transition, compared with other asset classes?

Aurélien Roelens (A.R.): Infrastructure underpins both societal living conditions and the transition: 70–90% of the emissions reductions needed by 2050 depend directly or indirectly on infrastructure (IPCC). Private infrastructure funds are uniquely positioned to drive this transition by providing long-term, active capital to modernise, expand and decarbonise the essential assets that deliver lasting environmental and social impact (e.g. emission reduction, decreased digital divide, more affordable energy).

LSFI: As both Managing Director within Cube’s Transport & Environment team and Chair of its ESG Committee, how do you reconcile investment performance, operational priorities and sustainability objectives when assessing a new opportunity?

A.R.: We invest in sectors where sustainability is a growth driver, not a constraint. We target infrastructure with strong transition-driven investment needs, then create value by reducing risks, lowering costs and capturing new opportunities. In public transport, we anticipated bus electrification, investing early and preparing our Nordic operators to win e-bus tenders, driving revenue growth and margin expansion. In district heating, we have spent 15 years decarbonising networks, starting in France before replicating that success across several European markets.

LSFI: Infrastructure assets are particularly exposed to physical climate risks because of their long operational lives. How is Cube incorporating forward-looking climate scenarios into investment decisions, asset valuations and capital expenditure plans, rather than relying mainly on historical data?

A.R.: We began adopting a systematic approach 10y ago, mapping climate-related risk to assess both impacts (e.g. milder winters for district heating) and adaptation costs (e.g. reducing wildfire exposure of rural infra) prior to investment decision. We use multiple sources, including public agencies, observatories, territorial bodies and academic institutions. Post-acquisition, we work with management teams to refine asset-level assessments and implement adaptation plans.

LSFI: Data centres are essential to Europe’s competitiveness, but their growing energy requirements are attracting increasing scrutiny. How can investors support the growth of digital infrastructure without undermining climate and resource-efficiency objectives?

A.R.: Prioritise facilities in regions with cool climates when no latency issues to maximize free cooling. Invest to decrease your PUE (VFDs, high efficiency UPS, advanced cooling, etc.), use hot aisles containment and maximize heat recovery (for district heating, industrials). Source your power from green energies at least contractually but ideally by developing behind the meter renewables or nearby renewable plants (net additionality to the local grid is also important…).

LSFI: Looking ahead over the next five to ten years, which technological, environmental or societal developments do you expect to have the greatest influence on European infrastructure investing, and what role can Luxembourg play in mobilising more private capital towards these opportunities?

A.R.: Energy transition will remain the main investment theme, increasingly linked to security of supply, grid expansion and system flexibility, and reinforced by the second major theme: digital infra, notably data centres. Further capital will flow into transport electrification and waste treatment, as well as into climate adaptation (district cooling, desalination plants, fire-suppression, etc.). Luxembourg as a leading domicile for cross-border infra funds, can be an efficient platform to channel investment into the energy transition (incl. blended finance for riskier greenfield projects).

The article can be read at its original source on the Luxembourg Sustainable Finance Initiative website.