PA energy expert, Olaf Remmler, is quoted in an article discussing pension funds and green investments. In recent years, Danish pension funds have shown a marked interest in investing in green energy as the market for green energy technology and green infrastructure projects has matured. However, to secure the investments they want, pension funds must compete against capital funds, which are more willing to take risks.
The general interest in green investments, such as wind farms, has increased the price of these investments, making it difficult to generate a sufficient return. Wind farms are put out to tender and this is a challenge to many pension funds, according to Olaf: “Pension funds need to be very aggressive in order to succeed with a tender. However, they also have to consider their pension savers. Pension funds are competing with capital funds that are far more aggressive and willing to take risks.”
Olaf says: “The success of COP 21 lies not only in getting countries to agree on further CO₂ reductions but also in getting them to start being serious about green investment and change their energy frameworks and regulations to make investing in green energy more attractive.”