As renewable energy adoption accelerates, energy storage is emerging as a critical investment opportunity, with global asset owners showing growing interest.
Temasek believes that carbon markets are critical for achieving net zero, while investing in sustainable economic growth is a fiduciary responsibility for long-term investors.
The Monetary Authority of Singapore's transition credit initiative, which aims to hasten the phase out of coal, can greatly benefit asset owners, although the gains could take time.
In selecting the climate technology companies to invest in, the state investment firm looks at factors such as risks, deployment costs, market acceptance, and the company’s R&D capabilities among others.
The positive environmental impact of wind power investments is driving large institutions to back new projects while pushing power companies to improve their alternative energy programs.
Besides carbon transition, renewable energy, energy efficiency technologies, and carbon credit markets are other key allocations for these asset owners.
The A$33 billion ($22 billion) superannuation fund continues to seek renewable assets, but mounting competition could introduce more volatility into Hostplus’s infrastructure portfolio.