UK pension funds are planning to increase allocations to renewable energy over the next five years, according to a report.
Nearly 70% of pension fund investors in the country say they expect renewable energy investment to increase by 2025, while just 10% expect it to fall, research by real assets specialist Alpha Real Capital found.
According to Alpha’s chief executive, Philip Rose, renewable energy infrastructure has the potential to provide “predictable cash flows, significant inflation linkage, and good duration”.
In the UK, 74% of the 50 pension funds surveyed already invest in the renewable energy sector – but over half believe it is still in the developing stages.
Boris Mikhailov, head of client solutions at Alpha Real Capital, said: “With more pension schemes looking to become carbon-neutral, investment in renewable energy infrastructure has significant ESG benefits and can help schemes on their journey to becoming carbon-neutral.”
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