EDMONTON—A group of 120 Canadian, American and European institutional investors with assets of $4.6 trillion see a significant opportunity in Alberta’s shifting carbon regulations.
The group, which was organized by NEI Investments, has delivered a letter to Alberta Premier, Rachel Notley, supporting the government of Alberta’s commitment to update and strengthen its climate policy.
“We believe that a robust and credible climate policy will be critical to the future success of Alberta-based companies, in particular the energy sector, and that it will provide necessary assurance to investors” the letter said.
“Phasing in an effective carbon price will substantively reduce emissions over time while giving companies the opportunity to transition, and giving capital markets the opportunity to respond and allocate capital effectively. Failure to act now increases the risk that an economically-disruptive price on carbon or other regulatory measures will need to be imposed at a later date,” it added.
NEI said while investors are “deeply concerned” about the portfolio risks associated with climate change, investors are also eager to exploit opportunities related to transitioning to a low-carbon economy, such as renewable energy, energy efficiency and sustainable land use.
“Well-designed policies will encourage scaling up of these investments and Alberta is well positioned to benefit,” the letter said.
The letter of support shows at least some investors, who have often been exposed to significant oilsands regulatory change risk, are ready to embrace a new era and fund cleantech in Alberta.