For countries with coal-heavy energy systems like South Africa, Vietnam, the Philippines and Indonesia, Ninety One looks to finance four areas, Moola said.
The first is clean-energy infrastructure, such as solar and wind farms, and batteries. The second is upgrading the electricity grid to integrate renewables and meet the new demands that will be placed on it, such as vehicle-charging. The third is providing adequate funding so that communities that currently depend on heavy-emitting industries – such as those in coal-mining towns – are not negatively impacted by the shift to cleaner energy. And the fourth is to incentivise utilities to retire coal plants earlier than they might on a purely economic basis.
“It is my view that there is a need to establish new financial mechanisms for the latter especially,” she added.
sally.hickey@ft.com
