Triodos Investment Management brought together investors and leaders in sustainability for a discussion on the opportunities following the Paris Climate Summit, and what role investment has to play.
Examining the Paris Climate Summit
It has been a little over 60 days since the Paris Climate Summit and it continues to have a powerful influence on multiple sectors. The individual country pledges are a good starting point to tackling the next steps towards addressing climate change, and 195 countries have agreed that more needs to be done. Governments intend to offer incentives for clean energy production and at the same time scale back support for fossil fuels like oil, as well as make emissions more costly.
The agreement sends a strong signal to the markets and the private sector that the direction is toward a low-carbon, low-emission world. The idea of investing in a coal mine will seem more risky to investors now and hence they will demand a premium. Solar and wind energy are going to be among the winners and the premiums demanded on these and other renewable energy investments are going down.
Together, governments and the private sector can build a secure, affordable and environmentally sustainable energy system. Challenges exist, but the opportunity is huge. Investments in green energy will create a range of benefits including but not limited to, a truly sustainable energy source, employment, and in the long-term, lower and more stable prices.
Connecting key players in sustainability
The Paris Agreement is a breakthrough and it’s time for action. Governments, the private sector, and individuals are called to take responsibility and help the world turn the sustainable corner. An important role is reserved for investors, as a lot of money is needed to make this happen.
This was the main message during the ‘Beyond Paris – Time to act’ event organised by Triodos Investment Management at the end of January 2016. The event brought together investors and leaders in sustainability for a discussion on the investment opportunities following the Paris Climate Summit, and the role investment has to play.
Investing in renewable energy
The main message from the event and the aftermath of the Paris Climate Summit is to act. By investing, not only do investors earn a decent return on the real sector renewable energy assets, but owners and developers of green projects also benefit. Most importantly, the world will remain liveable. Green investment can build a better future.
Call to action
The necessity is clear. Paris has set the framework. A lot of work needs to be done and we cannot afford to wait. For investors there are many interesting and lucrative investment opportunities in renewable energy. By investing in green projects they help building a better future.