Arabic
Chinese (Simplified)
English
French
German
Portuguese
Russian
Spanish
Changing energy landscape fuels infrastructure investing
Asset owners are pushing hard into renewable energy and sustainable infrastructure while still committing capital to other projects supporting the fossil-fuel energy segment, albeit at lower levels.
Sustainability is a big theme right now as investors become more attuned to the risks and investment opportunities inherent in a changing energy environment. At the same time, they are attracted to infrastructure as a whole to shield their portfolios from inflation threats and potential increases in interest rates.
As a result, infrastructure fundraising reached $31.8 billion in the second quarter, beating the previous fundraising high point in the first quarter of 2020 and the quarterly average of $24.5 billion since the start of 2016, according to data provider Preqin. Renewable energy has been taking a bigger share of the fundraising capital commitments. In the first quarter, 65% of the infrastructure capital raised was for renewable energy, with 9% for utilities and 8% for conventional energy, according to Preqin.
Of the infrastructure energy funds closed in 2021 through Sept. 16, 80% were renewable energy funds, compared with 14% mixed renewable and traditional energy and 6% non-renewable energy funds.
Read more @Pionline
261 views
