Energy industry demands action ahead of COP26

Ahead of COP26 this weekend, the Association of Investment Companies (AIC) has spoken torenewable energy infrastructure managers. They discuss what they expect to see from COP26, the impact of rising inflation and the sustainable investment themes they’re most optimistic about.

Jonathan Maxwell, Founder and CEO of Sustainable Development Capital, investment manager of SDCL Energy Efficiency Income, said: “We would like to see a focus on efficiency because, simply put, sustainability equals resource efficiency and we cannot continue to waste two thirds of the energy we produce. Fixing resource inefficiency needs to be the key focus of discussions about solutions and actions taken at COP26. We must think differently and encourage markets to invest in these changes, providing attractive returns for investment that helps bridge the gap to net zero. It should not just be greener energy production that feeds into the same broken and inefficient system, but making the system fit for purpose so that we maximise its efficiency.”

Jerry Polacek, Fund Manager of Ecofin US Renewables Infrastructure, said: “We expect to see rising aggregate commitments to combat climate change through the adoption of proven, cost-competitive renewable energy to decarbonise the global power sector. We anticipate government commitments to be embraced by the private sector through corporate goals that are driving ongoing technology innovation and capital investment. These factors, along with rising consumer demand for sustainable energy, will continue to propel exponential growth of carbon-free renewable energy as the predominant source of power in the coming decade.”

Michael Bonte-Friedheim, CEO and Founder of NextEnergy Capital, investment manager of NextEnergy Solar Fund, said: “COP26 is an opportunity for tangible action from world leaders and key decision makers. NextEnergy Solar Fund is a renewable fund that specialises in solar and we expect to see governments around the world invest heavily. We also expect them to drive policy change to facilitate increased penetration of renewables to help tackle climate change. Solar is in a great position to help capture this demand as it is the lowest risk and most affordable renewable technology globally.”