CLT presents on green finance and infrastructure investment at CLIX

CLT’s Principal Consultant Jeffrey Beyer shared insights into Green Finance and Infrastructure Investment in Brazil at the World Future Energy Summit’s Climate Innovation Exchange. He described the large and growing size of the infrastructure investment opportunity, estimated at $1.2 trillion in Brazil between 2017 and 2035, and what changes are shaping the investment marketplace.

The analysis showed that there are conditions that need to be met for investment to flow:

  1. There must be growth of new infrastructure development or a sale of existing public assets
  2. Investors have to be interested in the opportunity
  3. Investors need to have the capability to assess the opportunity so they can accurately determine the risk-reward profile
  4. The opportunity needs to be investible, meaning there must be a place in investors’ portfolios for the type of risk-reward on offer
  5. The enabling environment (rules, regulations and investment programmes) needs to be conducive to investment flows

Our analysis showed that UK investors could best be encouraged to invest by strengthening their ability to accurately assess the opportunities (#3 in the list above). To do this, Jeffrey discussed six ways to boost capability and demonstrate the suitability of some Brazilian green infrastructure for the portfolios of UK investors. For example, developing case studies of successful investments, strengthening partnerships to support co-investment with experienced international investors and considering non-traditional investments in ‘infrastructure of the future’ like alternative fuel refineries or smart grid infrastructure could help to stimulate investment.