January 22, 2018 Read More →

Where the Smart Money on China Is

South China Morning Post:

Environmentally-friendly fields like clean energy, food safety and health care, will offer key investment opportunities in the mainland, as technology boosts their profitability and climate change becomes a focus following the 2015 Paris climate accord.

“The theme of social responsibility and environmental friendliness is one area people should keep an eye out for,” said Jackson Chan, managing director at Eaton Partners, a global placement agency that primarily raises capital from pension funds.

“In the past it was very hard to link financial return and socially responsible investment. Technology has enabled social responsibility and environmental friendliness to achieve good financial returns, so I think these industries will be very powerful going forward. We want to focus more on that.”

US President Donald Trump’s decision to pull out of the Paris Climate Agreement this year has allowed China to further project itself as a globally responsible power.

Such achievements and ambitious goals have helped the world’s second largest economy maintain its position as a global leader of investment in clean energy projects, according to the Institute for Energy Economics and Financial Analysis (IEEFA)’s China 2017 Review.

Although China is still heavily dependent on coal-fired power plants, building a solar or wind facility is now cheaper than a coal facility, Chan argued.

Figures from the IEEFA show China will account for 42 per cent of global solar energy capacity growth from 2017 to 2022; the number is expected to be 35 per cent for hydroelectric energy, and 40 per cent for wind.

More: The smart money is on food safety, health care, clean energy in China this year, say experts

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