Four industry heavyweights have launched a coalition aimed at unlocking billions in renewable energy assets for UK pension savers.
Smart Pension, tokenisation specialist Ctrl Alt, investment platform Mobius, and renewables investor Octopus Energy Generation have signed a Memorandum of Understanding (MoU) to form the Tokenised Renewable Assets Coalition (TRAC).
The coalition will explore how blockchain-based tokenisation can revolutionise the way UK pension funds allocate capital to large-scale green infrastructure, promising increased efficiency, lower costs, and enhanced liquidity.
“UK pensions, renewable assets and tokenisation have a huge amount to offer each other,” said James Finch, CEO of Mobius. “Working alongside these fellow innovators provides the opportunity to explore how this combination could deliver meaningful benefits to UK savers.”
The move marks a pivotal moment in making previously ‘hard-to-reach’ asset classes accessible, directly supporting the UK Government’s agenda, including the Mansion House Accord, which urges pension providers to commit capital to private market investments.
Matt Ong, Founder and CEO of Ctrl Alt, emphasised the technological leap required to make this vision a reality.
“This coalition is an important first step in demonstrating how tokenisation can unlock access to previously hard-to-reach asset classes,” he said. “We aim to show how blockchain-based solutions can help pensions access new investment opportunities, enhance diversification and support government growth strategies.”
For the pension provider itself, the initiative is about leadership and scaling private market exposure to enhance member returns, according to James Lawrence, Director of Investment Proposition at Smart Pension.
“We are proud to be one of the UK master trusts leading the way in technology and private markets investment,” he said. “This collaboration will lay the foundations to help us make the innovative investments to scale, as we look to achieve tokenised AUM by the end of next year.”
Renewables expert Matt Setchell, Co-Head of Octopus Energy Generation’s funds business, said the development was both inevitable and essential for future energy security.
“Renewables are destined to be tokenised, and I couldn’t be prouder to be at the forefront of this,” said Setchell. “Through this alliance, we’ll be able to bring innovation into one of the next-gen markets and maximise savings for hard-working pensioners, all while building out a grid powered by cheap energy.”
TRAC will focus on developing a practical and compliant model to help the pension sector meet the government’s target of unlocking up to £50bn in investment for UK businesses. Smart Pension, a key signatory of the Accord, has pledged an even higher 15% target for private market assets by 2030, and this coalition is seen as the pathway to achieving this scale.
The coalition also invited other participants to join the movement and explore wider tokenisation opportunities, promising to streamline the pathway to a greener, more financially secure future for UK pensioners.
