Wanted: major investors to spend 'clean trillion' to avert disaster
NEW YORK (REUTERS) - Major institutional investors will need to ratchet up their investment in clean energy to achieve the massive funding goals necessary to avert catastrophic climate change, according to a report released on Wednesday by investment group Ceres.
Ceres, a non-profit organization which advocates for the adoption of "sustainable business practices," made seven recommendations for the private sector and three for governments on how to bridge the gap between today's clean energy investment levels and the US$1 trillion (S$1.27 trillion) per year target estimated in 2013 by the International Energy Agency.
Ceres said reaching the so-called "clean trillion" will require the financial firepower of deep-pocketed institutional investors, such as pension funds and sovereign wealth funds, who manage around US$75.9 trillion globally.
"Today's leading providers of capital to clean energy are primarily commercial banks, national and multilateral development banks and electric utilities. But these sources alone are insufficient to double annual global clean energy investment by 2020 and quadruple it by 2030," the report said.