Decarbonisation & Renewable Energy

In the world of investing and finance transactions, renewables, green energy and clean tech represent promising new territory for the future. Regent Assay can help you successfully explore and lay claim to the riches of its rewarding frontiers.

Get in touch if you have a pioneering spirit and an appetite for taking advantage of trailblazing opportunities: we can help you gain a valuable stake in the expanding energy transition sphere.

Investing in the future

With new records now regularly being broken due to the ever-more-obvious effects of climate change, the green or renewables sector is also consistently seeing new highs in terms of investment and returns.

Representing a relatively new frontier in technological and policy development, the dynamic area of financial growth and deal-making represented by ‘clean’ energy and green tech – as well as the accelerating move away from fossil fuel investments – can present investors with a number of unknowns and uncertainties – as well as unrivalled opportunities.

Having helped navigate a number of transactions in the fast-evolving area of disruptive technologies, Regent Assay is well positioned to assist our clients in better understanding, as well as identifying and successfully taking advantage of, a rapidly expanding range of promising chances for good returns in environmentally and socially responsible, or ‘impact’ investing.

The future of renewables and the new energy economy looks bright. Are you ready to switch to new ways of investing that can not only bring good returns, but that will also contribute to the solutions needed to provide a better world for all life on the planet?

Renewable energy: what are renewables?

Renewables or renewable energy sources are those originating from natural energy sources or environmental resources that are not depleted through use. The significance of renewable energy technologies that harvest renewable energy for electricity production, power usage and electrification in particular, is now undeniable.

In terms of deal activity in the global renewable energy sector, so-called Green Tech or Clean Tech deals are those that involve major transformations in the primary energy supply through power generation from renewable resources including via:

  • Solar installations
  • Wind generated power (eg on and offshore wind turbines)
  • Hydrogen power
  • Tidal/wave and geothermal sources
  • Biofuels (incl. biomass, biodiesel and ethanol)

Renewables transactions can also relate to developers and manufacturers of renewable technologies; technologies that rely on renewable energy supply; or technologies that counteract the effects of pollution, over-use of finite natural resources and climate change, such as:

  • Wind turbine manufacturers
  • Solar technology firms
  • Battery storage technologies
  • More energy efficient transport options such as electric vehicles
  • Carbon capture and storage technologies, or CCS

Deals that involve the following may also be included in renewable energy transactions, depending on context:

  • Nuclear power assets
  • Development rights purchases

Green tech or ‘clean’ tech

There has never been a more crucial time for the adoption of cleaner, greener technologies and habits. As climate change and environmental destruction take their toll on the planet, with clearly changing weather patterns; an exponential increase in global warming and associated rise in sea levels; and extreme weather events such as storms, heat waves, drought, flooding and out-of-control wildfires – widespread massive environmental destruction on a never-before-seen scale means that action is urgently required.

As predictions of disruptive climate impacts warn of dire consequences for humanity’s future, and as we gradually acknowledge the limitations of the earth’s finitely available resources and carrying capacity due to population increases, the development and deployment of new technological solutions for harvesting, producing, generating, storing and using energy and other natural resources has become an urgent imperative.

With all this in mind, there can be no doubt that green technology and clean power generation are good for the planet, people… and profits.

What is decarbonisation?

Decarbonisation refers to removing from, and reducing outputs of, carbon dioxide (CO2) in the earth’s atmosphere for the purposes of mitigating the associated effects of global warming. This can be accomplished through a switch from energy sources derived from finite fossil fuels such as oil, gas and coal to renewable or low carbon sources of energy generation as listed in the section above referencing renewable energy sources and power generation.

Sustainability, carbon offsets and low carbon living or low carbon lifestyle are now essential aspects of minimising our impact on the environment.

Decarbonisation activity, divesting from fossil fuel companies (FFCs), and investing in green technologies and renewables to speed up decarbonisation are now not only viable options for investors, but represent a pressing need. As such the renewables and decarbonisation market is an important driver of change for the planet.

What is green investing?

A component of ‘impact investing*, green investing, or – ‘energy transition investment’- is the investment in and financing of technologies and projects that support the use of renewable energy; and that help shift energy use away from high carbon or fossil fuel resources to low or zero carbon resources.

*Impact investments are those that have a positive impact on society and the environment.

Why invest in renewables or green energy and clean technologies? There are some important considerations in case you’re still wondering whether you should be investing in green energy. You may be asking:

  • Is renewable or green technology a good investment?
  • Is there money in green technology?
  • Does investing in renewable energy technology bring good returns?
  • Is it a good idea to invest in renewable energy?

Green or renewable technologies represent leading edge investment opportunities with huge potential for worthy returns in the medium to long term. Demand for clean energy capacity and clean energy shares is rising fast; decarbonisation or divestment initiatives are becoming more common; and renewables ventures are becoming more popular investment vehicles.

With policy shifts worldwide and moves towards more sustainable economic activities, as well as an increase in green stimulus programmes, some of the biggest financing in the global markets is now in support of green and clean tech.

In short: the climate scenarios set out for our future are steadily getting worse, and leaving little room for doubt about why investors should place their bets on renewables.

What is the best green investment?

New energy finance and transactions in the Green Tech or Decarbonisation and Renewable Energy sector are driven through increasingly urgent responses to climate disruption. These responses are constantly evolving as a result of the need for long-term renewable energy generation and supply security in the market place. Regulatory requirements and advancements are also drivers of deals in clean tech as well as informing divestment from businesses that foster the use of ‘dirty’ or fossil fuels as sources of energy.

The exponentially growing number of renewable energy deals and increased intensity of M&A activity in the clean energy sector – as well as increasingly reliable deal value and impressive returns – are creating a wide range of opportunities for investors with an eye to the future, and a willingness to wait for good returns over the longer term.

There’s no turning back as the demand for fossil fuels declines, and the world transitions to clean energy technologies, moving more resolutely along ‘net zero’ pathways towards a global low carbon economy to be able to achieve net-zero carbon emissions by 2050 according to the global Paris Agreement on climate change. The deal flow landscape and renewable energy investment trends are rapidly changing and requiring new ways of thinking about what constitutes ‘good’ investment strategy.

Let us help you make the transition to renewable investments while you help transform the planet for the better.