Policy uncertainty a barrier to low carbon investment: report
The Investor Group on Climate Change (IGCC) has released a survey report that finds that policy uncertainty remains a key barrier to low carbon investment, despite strong appetite for green deals.
The report, found that:
100% of investors surveyed intend to increase their green investment over coming years, although none planned to planned to publish a green investment target;
90% of investors identified lack of investable opportunities with appropriate risk return factors as the single largest inhibitor to growing investment;
80% said policy or regulatory uncertainty remained a major challenge for investment.
The report provides the collective views of Australian and New Zealand investors with funds representing over AU$328bn in assets under management surveyed in June 2017. These investors include superannuation funds, asset managers and sovereign wealth funds.
The IGCC is intending to update the report annually to improve understanding of the key drivers and barriers for investors seeking green investments and to identify where the key opportunities are emerging in regions and asset classes.
The full report, Road to Return: Institutional investors and low carbon solutions, is available here.