Spain's Energy Minister, Teresa Ribera, has called on major sovereign funds to set an example by prioritizing investments in clean energy, thereby paving the way for other investors. Speaking at an event with sovereign funds in Madrid, Ribera underscored the importance of global financial groups aligning themselves with climate security objectives and moving away from projects that create new climate risks.
Ribera stated, “The best they can do is invest in a clean and efficient energy model,” emphasizing the critical role sovereign funds can play in driving the transition towards sustainable energy solutions. She further urged financial institutions to refrain from investing in new coal projects and to only support fossil fuel initiatives that incorporate carbon capture technology and achieve climate neutrality.
In her address, Ribera added, “All global financial groups must move in favor of climate security and away from the creation of new climate risks.” This statement highlights the urgency of the climate crisis and the need for concerted efforts within the financial sector to mitigate environmental harm.
Spain, with its abundant sunshine, dammed rivers, and wind-swept terrain, has become an attractive destination for investors seeking opportunities in renewable energy projects. The Spanish government has set ambitious targets to reduce greenhouse gas emissions by up to 32% from 1990 levels by 2030, prompting increased interest from foreign energy companies, private equity funds, and sovereign wealth funds. Notably, Norway's sovereign fund has joined the ranks of investors by acquiring assets and stakes in the country's renewable energy industry.
Sovereign funds have also ventured into other industries within Spain, with the telecom sector being a notable example. Recently, Saudi Arabia's telecom company, STC, which is under the control of a Saudi sovereign fund, announced the acquisition of a 9.9% stake in Spain's leading telecommunications provider, Telefonica.
Teresa Ribera's call for sovereign funds to champion clean energy investments reflects the growing global commitment to combat climate change and transition towards a more sustainable and environmentally responsible energy landscape. Her words serve as a compelling call to action for the financial world to prioritize climate-conscious investments.
