Renewable Energy: More than just a “Green” Investment

The Renewable Energy sector is seeing exponential growth and increase in investment.

Increasingly, renewables are being accepted as the future in fulfilling our long-term energy requirements.

As such, governments alone cannot possibly hope to realise the enormous demand for investment in these technologies; the private sector holds the key.

Since 2004, the world has invested over $2.9 trillion into Renewable Energy, a figure that by 2030 will be true of the Asia-Pacific region alone.

Renewable Energy, including Waste-to-Energy, supplied a record 12% of the world’s energy needs in 2017, and that is set to increase year-on-year, as we make the transition away from fossil-fuels.

Private investment into renewables is no longer just something for the “environmentally conscious”, but rather, a practical investment strategy and a key component of a diversified portfolio.

Some of the world’s largest corporate bodies, including Apple, Google and General Motors are not just looking to reduce their environmental impact, but actively investing in renewable technologies.

Private investors are following suit, and reaping the benefits of an industry where business models are increasingly more sustainable, not to mention profitable.  

As recently as 2012, academics at Missouri University studied 131 green mutual funds and concluded that these “underperformed on a risk-adjusted basis” compared to traditional funds. The situation has changed drastically since then.

“We are now telling investors that they don’t always have to sacrifice returns” to be green, Brian Deese, head of sustainable investment at BlackRock, told the IFC meeting. “We are seeing a big increase in investor demand.”

This has been reflected in the number of huge investment funds turning their attentions to these types of investments.

In January of this year, the New York State pension fund announced plans to double its low-carbon investments, from $2bn to $4bn. This is symptomatic of the increasing investor confidence in the Renewable Energy Sector.

Of the financial instruments utilised for Renewable investment, bonds have emerged as one of the most prolific. Estimates put global issuance of Green Bonds at a record $155bn in 2017, with levels predicted to exceed $250bn this year. The global Green Bonds market is showing no signs of slowing down.

To find out more about the Renewable Energy Bonds we offer and potential investment opportunities, contact Amio Wealth Limited on +44 (0) 203 307 1250 or info@amiowealth.com.

All references mentioned. Article © Amio Wealth Limited.