Linking Investors to Renewable Energy Opportunities in Emerging Markets Is Key to COP21 Success

Some of the ingredients for catalyzing clean energy investments in Asia, Africa and other emerging markets have their own unique nomenclature—“blend 2.0,” “de-risking” and “national investment catalogues.”  Yet there is a more straightforward recipe:  A mix of national clean energy policies with the needs of institutional investors looking for opportunities that are safe and relatively profitable.

To date, creating this relatively simple blend has been largely elusive.  While clean energy investments in developing countries are growing at a rapid clip, it has been done with minimal help from pension funds, insurers and other institutional investors who manage enormous amounts of capital—tens of trillions of dollars among U.S. institutional investors alone.

But the momentum could be changing as clean energy environments are ripening worldwide.

On the heels of another year of record high temperatures and a historic global climate agreement in Paris, investors are opening their eyes to the urgency of shifting significantly more capital to clean energy in developed and developing countries.  Developing countries, whether in Asia, Africa or Latin America, are especially in need of capital because their economies, populations and overall carbon footprints are growing far more quickly compared to Europe, the U.S. and other industrialized countries.

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