Climate change: Private sector investments for developing countries and emerging economies
Zurich, 8 December 2015 — According to current forecasts, global energy requirements are set to increase by more than 30% by 2040, with the additional demand being driven 100% by non-OECD countries. (1) Measures to ensure the more efficient use of energy and the increased production of renewable energy in emerging economies and developing counties are therefore of key importance in order to reduce greenhouse gas emissions. With its targeted investment products, the Swiss asset manager responsAbility Investments AG is opening up this growth market in which there is strong demand for private sector investments in emerging economies and developing countries.
Energy production and energy consumption account for two-thirds of global greenhouse gas emissions. The International Energy Agency (IEA) estimates that in order to achieve the long-term decarbonization of the energy sector, investments in renewable energy technologies would need to increase from USD 270 billion in 2014 to USD 400 billion in 2030. The focus is on emerging economies and developing countries, which will experience the strongest growth in demand in the period up to 2040.
The energy supply gap cannot be closed and the continued strong increase in the demand for energy cannot be satisfied without substantial investments in the sector. Since limited funding is available and because the public sector has other priorities, the private sector can assume a key role in efforts to overcome the investment deficit across many areas.
The way in which this can be achieved is demonstrated by the Swiss asset manager responsAbility, which specializes in opening up development-related investment themes for private sector investment. For example, responsAbility manages a climate fund that invests directly or through banks in energy efficiency and in the production of renewable energies in emerging economies and developing countries. Specific examples include the financing of solar energy systems for industrial parks in Nicaragua or of energy efficiency projects for India’s agricultural sector.
Another investment vehicle managed by responsAbility provides financing in Africa and India for companies that offer home solar systems for people living in isolated areas without access to the power network. A company established in 2014 finances, constructs and operates small-scale hydropower and biomass power plants in East Africa, thus contributing to the generation of renewable energy.
Klaus Tischhauser, Co-Founder & CEO of responsAbility, explains the company’s commitment to the energy sector as follows: “responsAbility specializes in development investments, which generate a return while having a positive impact on development. Access to energy is a basic prerequisite for the development of any economy. In order for this to be achieved sustainably, energy must be derived from renewable sources and be used efficiently. The investment products managed by responsAbility allow private sector investors such as banks, insurers and pension funds to actively invest in this development and to also participate in its growth potential.“
(1) International Energy Agency: World Energy Outlook 2015, November 2015
responsAbility Investments AG
Ulli Janett, Media Relations
Telephone: +41 44 250 67 15
e-mail: ulli.janett [at] responsAbility.com
About responsAbility Investments AG
responsAbility Investments AG is one of the world’s leading asset managers in the field of development investments and offers professionally managed investment solutions to both private and institutional investors. The company supplies debt and equity financing to non-listed firms in emerging economies and developing countries.
responsAbility currently has USD 3 billion of assets under management invested in over 500 companies in 93 countries. Founded in 2003, the company is headquartered in Zurich and has local offices in Bangkok, Geneva, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris. Its shareholders include a number of reputable institutions in the Swiss financial market as well as its own employees. responsAbility is regulated by the Swiss Financial Market Supervisory Authority FINMA.