Professional Investors Forecast Surge in Institutional Investment in Clean Energy

A new study finds professional investors are predicting strong growth in institutional investment in clean energy in 2023 driven by a growing focus on lowering the carbon footprint of their portfolios.

The research by HANetf shows that more than half (51%) of institutional investors and wealth managers believe institutional investment in clean energy will increase by 10% or more next year with 9% predicting growth of more than 20%.

The key reason identified by the research among professional investors questioned in Germany, Switzerland, Italy and the UK responsible for $67.1 billion assets under management is a growing focus on reducing the carbon footprint of their portfolios.

Changes in regulation are also making clean energy investments more attractive while diversification, increased transparency and the potential for attractive returns is increasing the appetite for clean energy investment, the research found.

Demand for clean energy investment is expected to grow in the medium term – around 87% say the level of investment exposure pension funds, other institutional investors and wealth managers have to the sector will increase over the next two years. More than a quarter (27%) predict a dramatic increase.

Growth in demand will translate into the launch of more investment opportunities for institutional investors in clean energy – more than three-quarters (78%) questioned expect an increase over the next three years with 13% predicting a dramatic increase.

Commenting on the study Hector McNeil, co-CEO and co-Founder of HANetf said: “The increase in allocations to clean energy by institutional investors in the year ahead are significant and reflect the growing focus on the investment opportunities in the energy transition.”

“Professional investors clearly expect the growth in clean energy investment to continue for the foreseeable future.”

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