LONDON: British pension scheme Nest said on Saturday it had agreed to invest up to 1.4 billion pounds ($1.95 billion) into green energy projects over the next decade through a partnership with Octopus Renewables.

Nest, which manages 16 billion pounds in auto-enroled retirement savings for more than 9.8 million members - one in three of the UK workforce - said it expected to invest around 250 million pounds in projects across Europe during 2021.

The tie-up with Octopus Renewables, the largest investor in utility-scale solar power in Europe and a leading investor in UK onshore wind and biomass, will be the first time Nest has invested directly in unlisted infrastructure assets.

Part of a broader industry shift to private market assets in a hunt for yield, the move aims to capture a slice of the expected surge in opportunities as Europe looks to shift to a low carbon economy in response to climate change.