This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New Study: Institutional Investors Face Limits To Renewable Energy Investment

SAN FRANCISCO, March 7, 2013 /PRNewswire-USNewswire/ -- Institutional investors, such as insurance companies and pension funds, manage a combined $71 trillion in assets. As one of the largest pools of private capital in the world, these investors generally have objectives that, on the surface, appear to align with renewable energy returns.

However, in a new study, " The Challenge of Institutional Investment in Renewable Energy," Climate Policy Initiative (CPI) finds significant limits to a large increase in institutional investment in renewable energy projects. These barriers include government policies and investment practices.

If all policy barriers were removed and investors optimized their renewable energy related investment practices, CPI finds that institutional investors could supply one quarter to one half of the investment needed to fund renewable energy projects through 2035. However, even at these levels of Institutional Investment, it is unclear whether institutional investment would be enough to lower the cost of financing renewable energy materially.

"Policymakers and renewable energy project developers often look to institutional investment as a potential source of capital that can help reduce the cost of wind and solar projects," said David Nelson, Senior Director of CPI. "Our findings suggest that in the near future, this is unlikely to be the case without drastic shifts in government policy, regulation, and investment practices."

Increasing institutional investment beyond these levels will require creating new types of investment vehicles that are accessible to a wider range of institutions while meeting institutional constraints on liquidity and diversification. 

"While institutional investors may not be the panacea for renewable energy investment, there may be opportunities for institutional investors to make renewable energy a part of their portfolios while going partway towards meeting policymaker goals," said the Institutional Investors Group on Climate Change, the Investor Group on Climate Change, the Investor Network on Climate Risk, and the United Nations Environment Programme Finance Initiative in a foreword to the report.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs