Emerging markets require more than half of the $100 trillion of investment the world needs to reach net zero targets by 2050, according to BNY Mellon Investment Management
Governments may be tempted to backtrack on emissions commitments in the short term, but investors see new opportunities arising from energy uncertainty.
Wind farms offer long-term investors an attractive return profile and are already receiving broad-based political support in New Zealand and Australia.
Three major Asean countries — Vietnam, Indonesia and the Philippines — are leading in developing renewable energy sources and giving investors new opportunities.
Solar, green hydrogen and the mobility transition in particular offer investment opportunities within the energy transition space, Steve Howard of Temasek said.
Digital infrastructure and renewables are at the heart of the Canadian pension fund’s Asia strategy — not to mention key sectors for anticipated Asian demand.
Australia’s second largest superannuation fund will only divest as a last resort, saying its better to work with, rather than against, those companies with ESG risks.
The New Zealand sovereign fund will expand into Asia in the coming years.
Investors should dig deeper into subsectors along the value chain to benefit from China’s carbon neutrality push, Asian equities experts said.
EM corporate debt offers positive real yields while Japan stocks are increasingly attractive as a proxy for global growth. Moreover, Asia is set to benefit from the global upturn in the next phase of the cycle.
Institutions and family offices alike are sharpening their focus on themed investments to prepare for transition to low carbon economy.
The Canadian pension fund aims to more than double its regional infrastructure investments by 2026, particularly in renewables, data centres, fibre networks and satellites.