Buyout Firms Wary on Cleantech Deals —
Want Government Assurance

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LONDON -(Dow Jones)- Private equity firms want to invest in the cleantech sector but are holding back because a lack of regulatory control and government financial incentives makes it too risky, according to research released last Friday.

By Marietta Cauchi

Investments in renewable energy projects and assets, such as those in energy efficiency, energy storage and smart grid, have the potential for massive returns but without greater policy certainty and financial incentives investors aren’t going to provide the resources to enable the sector to grow, said international law firm Norton Rose in its industry report.

“Our respondents had very strong views about the need for an international treaty to provide sufficient regulatory and financial support to the cleantech sector,” said Ian Moore, a corporate finance partner at Norton Rose.

“While a number of individual countries have policies in place to support cleantech, there is a demand for much greater policy certainty and for a binding global legislative framework to assist the sector to develop and grow, and to give greater confidence to investors,” he added.

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