Institutional challenge of renewable energy investment

Institutional challenge of renewable energy investment

A new report by Climate Policy Initiative finds that institutional investors may not be able to fully cover the needed investment in renewable energy. The investors include insurance companies and pension funds, with a combined portfolio of over $70 trillion in assets.

The report titled, “The Challenge of Institutional Investment in Renewable Energy,” identifies a series of constraints especially policy barriers that hinder regulation of pension plans, investor practices and insurance companies.

The report proposes policy and institutional solutions to address these challenges, including: (i) encouraging utilities and other corporations to invest in renewable energy, (ii) fixing institutional policy drawbacks that discourage investors from the sector, (iii) modifying regulations of pension and insurance to promote renewable energy investment without creating new risks for institutions, (iv) improving institutional investor practices through capacity building in evaluating investments in the renewable energy sector, and (v) developing better pooled investment vehicles that fits institutional investors needs. Read more

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