While the US is viewed as the biggest market for solar, Deutsche Bank Asset Management is advising cleantech investors to put their money in business outside the U.S. because of its on-again, off-again climate policies, which result in uncertainty for investors.
In their report, they say investors should rather focus on Germany, Brazil and China instead of the U.S. They also identified Australia, Japan and France as countries of lower-risk for investors. Italy is the riskiest country for investment because of its lack of regulations.
The bank created a risk profile for investors after examining 270 policies of countries around the world. Low-risk countries have the most comprehensive, transparent climate policies which offer investors greater certainty for their renewable energy and energy efficiency investments.
The Deutsche study confirms what climate activists and proactive companies have been saying – only strong policies and regulations will create a level playing field for companies and investors.
The study points out that current policies and plans around the world fall far short of what’s needed to avert catastrophic changes in the world’s climate. Only private capital can raise the level of investment needed – between $300-$700 billion a year.
"The policies in place today don’t get us there, not even close to there, under the best of circumstances," Kevin Parker, global head of Deutsche Bank Asset Management, said in a journalists’ conference call.
"Investors will go where risks are low, and will move on to safer businesses unless climate industries are better regulated," he said.
Loading...