When asset owners go on the same path toward low-carbon investment, it will attract the massive funding for sustainable energy.
Apparently, the time has arrived for investors and asset owners to be involved actively in climate-change mitigation. One of the approaches is by implementing a decarbonization economy and commencing low-carbon investment.
Investors own the privilege to perform it because there are rooms to innovate. Also, they don’t need to worry about financial and tools resources
Key of Low-Carbon Investment
The investment instrument that could be used as funding for a low-carbon economy is relatively inadequate. At least, it’s not as common as the traditional one. Whenever a company decides to be concerned, start by integrating the climate-change risk into equity investments.
From this circumstance, the company could propose some strategies for decarbonizing the economy. For example, by financing key active players in energy transition campaigns.
By engaging in these green bonds, the funding mechanism will be highly transparent. Furthermore, it would widen the scope for other players who are also on the same journey toward sustainable energy.
Certainly, determining sustainable investment is not an easy task. Sometimes, many sectors are also facing a big difficulty in tracing their carbon footprint.
This is why they need innovative investors to accommodate in shaping the company’s policy in accordance with the low-carbon concept. There comes risk and also opportunities at the same time.
Not only for the companies involved in the energy sector, but other companies also need to obtain the strategy to reduce the emission and pollution.
Even the banking sector could also be responsible for achieving energy toward the low-carbon one.
Why Low-Carbon Investment Is Necessary?
Slowly but sure, waste management Indonesia is mitigating the impact of climate change. Indonesia is currently in a phase where based on the most recent data, namely in 2015 from the Ministry of Environment & Forestry of the Republic of Indonesia, 69% of Indonesia waste goes to the landfills, 23.5% is managed illegally by being burned, buried, or littered, and only 7.5% is recycled or composted.
Fast forward to 2020 when the COVID-19 pandemic emerged, there comes a new hurdle in implementing eco-friendly waste management. There are medical and infectious wastes, also contribute to the piling waste in landfill.
Furthermore, these kinds of medical and infectious wastes are difficult to be recycled. Certainly, there is a risk of spreading the disease. The material is most likely broken when comes in contact with body fluids like saliva, blood, etc.
Likewise, when eco-friendly waste collection is getting more complex, there would be other wastes left unmanaged. For example, used cutleries.
Here comes the domino effect: Not only polluting the environment but also put the people in charge of this waste management Indonesia stuff at risk.
This is why low-carbon investment is crucial to overcome this situation. Not only in the form of innovation and technology but also in education and human resources.
Waste 4Change from Bekasi has been doing extensive steps from eco-friendly waste management to eco-friendly waste collection. Moreover, Waste4Change also granted the trust from Agaeti Ventures together with East Ventures and SMDV in March 2020.
Still, there’s a long way to go. The opportunities for investment and collaboration with others who are interested in low-carbon investment is widely open. Thus, waste management Indonesia would be better. Visit w4c.id/RWM to elaborate more.
Investing in the Low-Carbon Economy. https://www.ft.com/brandsuite/Amundi/investing-in-the-low-carbon-economy.html?utm_source=TW&utm_medium=interest&utm_content=image_tweet
How to Invest in the Low-Carbon Economy. https://www.unpri.org/download?ac=6241
Managing Climate Change Risks with High Quality, Low Carbon Portfolios. https://www.morganstanley.com/ideas/climate-change-low-carbon-stock-investing
Author: Azelia Trifiana