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Energy transition saw record investment in 2021 – report – MINING.COM – MINING.com

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The report points out that renewable energy remains the largest sector in investment terms, achieving a new record of $366 billion committed in 2021, up 6.5% from the year prior. Electrified transport, which includes spending on electric vehicles and associated infrastructure, was the second-largest sector with $273 billion invested. 

“With electric vehicle sales surging, this sector grew at a breakneck rate of 77% in 2021 and could overtake renewable energy in dollar terms in 2022,” the document reads.

The market researcher’s data show that nuclear, energy storage, electrified transport and electrified heat accounted for the vast majority of investment at $731 billion. Hydrogen, carbon capture and storage and sustainable materials made up the rest, totalling $24 billion.

“The global commodities crunch has created new challenges for the clean energy sector, rising input costs for key technologies like solar modules, wind turbines and battery packs. Against this backdrop, a 27% increase in energy transition investment in 2021 is an encouraging sign that investors, governments and businesses are more committed than ever to the low-carbon transition, and see it as part of the solution for the current turmoil in energy markets,” Albert Cheung, head of analysis at BloombergNEF, wrote in the report. 

Cheung pointed out that Asia Pacific was both the largest region for investment at $368 billion or nearly half the global total, and the region with the highest growth at 38% in 2021. Europe, the Middle East and Africa grew by 16% in 2021, reaching $236 billion, while the Americas saw investments grow by 21% to $150 billion.

“China was again the largest single country for energy transition investment, committing $266 billion in 2021,” the dossier notes. “The United States was in second place with $114 billion, though EU member states as a bloc committed more at $154 billion. Germany, the UK and France rounded out the top five countries for energy transition investment in 2021. Asia-Pacific countries now hold four of the top 10 places in terms of energy transition investment levels, with India and South Korea joining China and Japan.”

Future scenarios

Despite the record growth toward energy transition, BNEF’s experts believe investment levels need to roughly triple, such that they average $2.1 trillion per annum between 2022-2025, in order to get on track with any of the three alternative scenarios the firm has outlined to reach global net-zero by 2050, in line with 1.75 degrees of global warming.

Once they triple, investments will need to double again to an average of $4.2 trillion between 2026 and 2030 to meet the goals of the Paris Agreement.

BNEF’s figures show that, however, at current growth rates, the electrified transport sector is the only one that has the best chance of getting on track for such investment levels.

Energy transition saw record investment in 2021 - report

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China proposes rules to regulate private pension investment via mutual funds – Reuters.com

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A Chinese national flag flutters near the building of China Securities Regulatory Commission (CSRC) at the Financial Street area in Beijing, China July 16, 2020. REUTERS/Tingshu Wang/Files

SHANGHAI, June 25 (Reuters) – China’s securities regulator proposed rules to regulate private pension investment via mutual funds, setting the criteria for qualified products and sales agents under a scheme that will channel fresh savings into the country’s capital markets.

The draft rules, published by the China Securities Regulatory Commission (CSRC) late on Friday, came after Beijing in April launched a milestone private pension scheme to tackle challenges of aging population. read more

Under the scheme, eligible Chinese citizens can buy mutual funds, savings deposits and insurance products via their own individual pension accounts, potentially boosting a pension market that has lured foreign asset managers including Fidelity International and BlackRock.

The proposed rules “have set a relatively high bar for products and institutions, and are designed to ensure safety of pension fund investment and protect investors’ interest,” the CSRC said in a statement on its website.

Initially, pension target funds with at least 50 million yuan ($7.48 million) of assets over the past four quarters are eligible under the pilot pension scheme, the CSRC said.

Other types of retail funds with clear investment strategies and good long-term track records will be gradually added to the eligibility list as the scheme expands, the CSRC said.

Currently, there are 91 pension target funds that meet the CSRC’s criteria, according to TF Securities.

In addition, fund managers and sales agents participating in private pension business must set up internal control systems, adopt long-term incentives, and ensure independent operation of the pension assets, according to the rules.

Independent consultancies estimate China’s private pension market will grow to at least $1.7 trillion by 2025, from $300 billion currently.

In 20 years, 28% of China’s population will be more than 60 years old, up from 10% today, making it one of the most rapidly-aging populations in the world, according to the World Health Organization.

($1 = 6.6878 Chinese yuan renminbi)

Reporting by Samuel Shen and Brenda Goh
Editing by Nick Zieminski

Our Standards: The Thomson Reuters Trust Principles.

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Not gold or bank FD, Jefferies finds this asset as top investment by Indians | Mint – Mint

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Amid soaring inflation and slowdown worries, investors are busy finding out save haven for their money. While some are batting in favour of gold, some investors are favouring debt instruments for short term like bank fixed deposits (FDs) and other deposits. But, if we go by the Jefferies findings, around half of the Indian household savings in March 2022 has been invested in real estate properties whereas bank deposits and gold are distant second and third most preferred asset investment options among Indian households.

As per the Jefferies findings, out of $ 10.7 trillion Indian households assets in March 2022, whopping 49.4 per cent have been invested in real estate properties whereas 15.10 per cent went to band deposits 15 per cent of the Indian households savings were invested in gold. Impact of Covid-19 pandemic was also visible in this Jefferies report as Indian households invested 6.20 per cent of their net savings in insurance funds and it was fourth most preferred investment option by Indians.

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Photo: Courtesy Jefferies

Provident funds and pension is at 5th spot after receiving 5.70 per cent of $10.70 trillion Indian households savings in March 2022. Despite heavy FIIs selling at Indian equity markets, DIIs have remained net buyers since October 2021. However, in Jefferies report, equities has received 4.80 per cent of the net Indian households savings in March 2022 and it is 6th most preferred investment option among Indians. As Indian households has a habit of keeping some part of its savings in liquid form. 

Jefferies report has a mention about it as well. As per the Jefferies findings, 3.50 per cent of the net Indian households savings in this period has gone to cash or liquid segment and it an obvious least preferred option among the Indian households.

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HomeFirst Home Healthcare secures investment from Fulcrum – PE Hub

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Harpeth Ventures also participated in the investment.




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