1 min read
Moderator: Piet Klop, Senior Advisor Responsible Investment, PGGM
Speakers:
-
Pierre Abadie, TKO Executive Director - Co-Head Energy Transition Practice, Tikehau Capital
-
Edward Lees, Senior Portfolio Manager, BNP Paribas Asset Management
-
Pieter Regnery, Senior Portfolio Manager, APG Asset Management
-
Alexander Hartman, Chief Financial Officer, Northvolt
The Covid-19 pandemic has brought lower emissions but not for the right reason. To achieve a lasting reduction in global emissions, a rapid increase in clean energy investment is needed. Many investors have made positive allocations to low-carbon or fossil-fuel-free assets, but what are the barriers towards further allocations? As poor availability of products is often one of the main challenges, this panel looked at different types of solutions, ranging from different asset classes (equity, fixed income, private equity) to themes (renewables, sustainability themed equities).
The panelists highlighted that some of the main challenges of the energy transition concern the quality of investment proposals as these are often not aligned with the scope, mission, or management of a fund. Additionally, a significant amount of ideas lack commerciality or are not operationally mature enough to attract investments.
As a future outlook, the panelists noted that capital allocation towards renewable energy projects need to be accelerated. Therefore, policy makers have to take a step forward. Pierre Abadie (TKO Executive Director - Co-Head Energy Transition Practice, Tikehau Capital) referred to COVID-19 as a driving force in this process.
The crisis has changed the overall discourse, increasing stakeholders’ focus on reallocating resources to create a more competitive, local, and resilient economy. As a result, the energy transition is no longer driven by climate considerations alone.
Pieter Regnery (Senior Portfolio Manager, APG Asset Management) followed up on this by stating that the energy transition represents a theme around innovation – “it is risky” he explained, “but it is happening. If you ignore it as an investor, it comes at your own peril. So embrace it.”
About Phenix Virtual Impact Summit:
Phenix Virtual Impact Summit is a highly curated virtual conference that enables institutional investors and asset owners to share knowledge, exchange best practices and navigate the opportunities within impact investing industry.
All information and Recordings of the Virtual Impact Summit 2020 are the proprietary products of and owned by Phenix Capital. The reproduction, misuse, dissemination or modification is strictly prohibited without the knowledge and permission of Phenix Capital.
Click below and register for our upcoming events
