Celine Tercier, Head of Infrastructure Finance at Natixis Investment Managers International Private Debt, was a key participant at a recent global infrastructure conference. Tercier was a panellist at the Infrastructure Investor Global Summit Online Virtual Experience 2020.

During the panel session, entitled “Renewable Energy Sector Post Covid-19: Impacts on power price and future demand expectations”, the growing share of electricity produced by renewables was highlighted. It was agreed that the 2020 Covid-19 pandemic had demonstrated the reliability of green energy.

The panel also discussed the lessons learned from the pandemic. Notably, the importance of managing counterparties to mitigate credit risk, and why investors should focus on how Power Purchase Agreements are structured.

The opportunity in renewables and green assets is likely to grow, Tercier believes, driven by market demand, regulation and government targets.

Energy and transport are the biggest contributors to CO2 emissions, so it is likely that renewable energy, green mobility and energy-efficient building will offer sizeable opportunities for investors,” in the framework of low carbon society Tercier says.

If investors lend to ESG-focused infrastructure projects, which represent secure credits and are operated well, they can receive returns which both match long-term liabilities and improve society, the workplace and the environment.

Infrastructure debt should increasingly appeal to investors requiring both consistent income and ESG-compliant assets.

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This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.

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