The global effort to reverse climate change has been top of mind for investors, with the current energy crisis highlighting once again the pressing need for drastically increasing the use of renewable energy sources (RES) in power generation. The EU 2050 target of a near zero carbon economy places a great deal of pressure on member states to accelerate investments in alternative sources of energy.

By conservative industry estimates, Cyprus will require a minimum of €10 billion of investment (€5 billion by 2030) to increase the share of RES in electricity production. Solar photovoltaic (PV) and solar thermal parks will receive the lion share of these investments, especially given the emerging storage solutions, which allow for autonomous solutions to be installed in remote areas, without any grid dependency.

RES investments present low risk opportunities with predictable and steady income streams, appropriate and useful allocations in portfolios of both institutional and retail investors. Importantly, these opportunities also serve the societal goal of tackling the source of rising global temperatures and air pollution, leading the way to a sustainable future.

Disclaimer: While the aforementioned text underscores the importance and potential of investing in renewable energy sources, it is imperative to note that the fund/strategy being discussed is not an ESG Focused Fund and does not prioritize ESG considerations in its investment decision-making process.