Alternative energy investments could soar because of $18 billion in tax and other federal incentives that were in the recently enacted $700 billion financial rescue bill, as well as more favorable green investing and renewable energy legislation from the next Congress, investment managers said today in a Social Investment Forum teleconference.
Ten of 14 social investment firms responding to an SIF survey released today plan or are considering funds by the end of next year focused on clean energy and clean technology investments.
Seventeen mutual funds or other investment portfolios offered by the respondents, with a combined $250 million under management, now focus exclusively on clean energy and clean-tech investing, Lisa Woll, SIF CEO, said at the teleconference.
All respondents to the survey, conducted in September and October, saw strong demand for investing in clean energy/clean tech, which is growing faster than the traditional investment management market, Ms. Woll said at the teleconference.
The new tax and other incentives to promote alternative energy were included in the Emergency Economic Stabilization Act, signed into law Oct. 3.
Jackson Robinson, CIO at Winslow Management, an environmentally focused manager, said at the teleconference, Despite the economic problems we all face, Winslow remains extremely optimistic about clean energy.
Adam Seitchik, CIO at Trillium Asset Management, a socially responsible investment firm with green funds, said at the teleconference that the next Congress could enact a carbon and other taxes on fossil fuels, raising oil and other traditional energy prices, as well as providing more alternative energy incentives, all aiding clean energys competitive position.
SIF is an association for the social investment industry, comprising some 500 mutual fund, banking and research companies as well as foundations and other investment-related institutions.