This article was first published on Renew Economy on 21 September 2017. Australian institutional investors have a strong appetite for low carbon assets, but policy uncertainty and a lack of scalable deals are major barriers.
Institutional investors have a critical role to play in achieving the ambitious goals of the Paris Agreement. According to the International Energy Agency, around $75 trillion in low carbon investments and energy efficiency combined will be required to limit average global warming to below 2°C.
The challenges of transitioning to a net zero emissions economy will require an unprecedented level of capital investment and represent a massive market signal to the global economy.
So how are local investors thinking about scaling up investment?