The Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund created to invest the income from oil exports, says it may increase its investment in renewable energy.
“The world’s energy industry is in the early stages of a fundamental shift from fossil fuels to a more sustainable reliance on a range of renewable technologies,” said the authority, in its annual report.
ADIA said it had conducted a review of “the important reality of climate change and its potential impact” and may now deploy capital in support of these “new fields of investment”.
Two years ago, ADIA invested in Indian renewable energy company Greenko Energy Holdings, along with Singapore’s GIC fund. Norway’s $1 trillion sovereign wealth fund, believed to be the world’s largest, has also stated its intention to assess the impact of climate change on its investments.
In ADIA’s financial results for 2017, the fund posted a slight increase in its 20-year annualised return to the end of 2017 compared with 2016 (from 6.2% to 6.5%).
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