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Leslie Kramer
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Nation’s Largest Investors Call for ’Green Recovery’

Investors urge congress to support energy efficiency and clean energy in economic stimulus bill

A group of 44 investors managing over $1.7 trillion in assets called on Congressional leaders to include significant funding for energy efficiency, clean energy and clean transportation in the economic stimulus bill being debated this week in Congress.

In a letter delivered to House and Senate leaders and the Obama administration, U.S. and European investors called for longer-term green economic incentives, including extending the renewable energy Production Tax Credit five or more years; providing substantial funding for energy efficiency programs, such as retrofitting buildings; and modernizing the aging and inefficient electric power grid.

"Before you are a range of policy measures to stimulate research, development and deployment of cleaner, more efficient technologies at the scale necessary," stated the letter, citing the bill's dual potential to create green jobs and curb global warming pollution. "The economic recovery package should not pick technological winners, but rather should aim to bring forward a portfolio of technologies that both enable reductions in greenhouse gas emissions and promote America's energy security," said the letter, according to a press release.

The letter, coordinated by Ceres and the Investor Network on Climate Risk, was signed by some of the world's largest institutional investors, asset managers, state treasurers and controllers, including Deutsche Asset Management, F&C Asset Management, the California Public Employees' Retirement System (CalPERS), New York State Comptroller's Office, California State Teachers' Retirement System (CalSTRS), Florida State Treasury and New York City Comptroller's Office.

"The economic downturn provides a historic opportunity for government to take charge of the fight against climate change rather than being a reason to put off action," said Kevin Parker, global head of Deutsche Asset Management, in the release. "A 'green' stimulus will also have a wider effect by providing leadership for additional investment from the private sector," he said.

"An energy economic stimulus package would not only be good for the environment, saving energy and reducing greenhouse gas emissions, but also good for the economy, leading to the creation of jobs," added New York City Comptroller William C. Thompson, Jr, in the release. His office oversees more than $100 billion in pension fund assets.

"The economic stimulus package is a golden opportunity to stake out America's leadership in driving energy efficiency and the emerging clean energy global economy," added Mindy S. Lubber, president of Ceres and director of the Investor Network on Climate Risk, in the release. "Strong green incentives that send clear market signals to the business community will lead to new jobs and new industries," she added.

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