CalPERS says US government’s move to cut carbon emissions ‘beneficial’ for renewable energy investors

The Chief Executive of US pension fund giant, CalPERS, Anne Stausboll, has written to the Environmental Protection Agency (EPA) to applaud its decision to make US power plants reduce their carbon dioxide (CO2) emissions, saying the move will be a huge boost for long-term investment in renewables and energy efficiency investments. In June, the EPA said that it would require US power plants to cut their emissions of CO2 30% by 2030 against 2005 levels, marking the first time the US government has limited CO2, the main greenhouse gas. Writing to EPA Administrator Gina McCarthy, Stausboll said she expected the requirement to “catalyse energy efficiency and renewable energy deployment, which should benefit both CalPERS and other long-term investors with exposure to renewable energy companies.”“Additionally, the rule includes both opportunity and flexibility for the electric power sector to determine the optimal way to invest in clean, efficient renewable resources and grow the economy,” Stausboll added.
CalPERS has allocated $1.2bn (€930m) to private equity funds that target investments in renewable energy firms. In addition, the $293.1bn US pension giant has around 1% of its assets in forestry.
In her letter, Stausboll also called the EPA’s move “useful” in mitigating risks posed by climate change. This is relevant, as “CalPERS is keenly interested in risks that emerge slowly over time and have the potential to materially impact portfolio performance if not properly addressed.”
Link to Stausboll’s letter to the EPA