February 2, 2018 Read More →

Institutional Investors Move Toward Bigger Stakes in Renewables and Clean-Energy Infrastructure

S&P Global Market Intelligence:

A number of investors are positioning themselves to make big investments in the coming years to tackle climate change risks and help nations and local governments slash greenhouse gas emissions in line with the goals of the Paris Agreement on climate change.

Participants at a Jan. 31 Investor Summit on Climate Risk in New York City said they see room for investment in low-carbon indices and in infrastructure for the energy, water and real-estate sectors.

“The potential for infrastructure and renewable investment is immense; however, the supply side is just starting to accelerate,” said Maurice Tulloch, CEO of international insurance at Aviva Plc, a multinational general insurer and life and pension management firm based in London. Aviva is looking to invest £500 million per year over five years in low-carbon infrastructure, Tulloch said.

Scientists increasingly are able to link climate change to extreme events, including heat waves, coastal flooding and dramatic changes in rain and snow patterns, Rosina Bierbaum, professor of natural resources and environmental policy at the University of Michigan, said at the start of the conference hosted by Ceres, the United Nations Foundation and United Nations Office for Partnerships. Those changes threaten existing infrastructure and natural ecosystems and can disrupt the global supply chain, she said.

Moreover, significant public and private financing is key to addressing climate change, Bierbaum continued. The Organisation for Economic Co-operation and Development estimates that US$6.3 trillion in infrastructure investments need to be made annually around the world between 2016 and 2030 to meet development needs associated with climate change.

More ($): Investors foresee climate-related financial opportunities amid emerging risks

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