Irish government launches major low carbon asset management push

Initiative to tap potential $1trn market

The Irish government has made a major play to tap into what it says is a predicted $1trn global ‘green’ asset management growth market.

The Global Green Asset Management Network was unveiled at the New York Stock Exchange yesterday by Prime Minister Enda Kenny. It aims to boost Ireland’s fast-developing green asset management “cluster” and build on the country’s existing €2trn investment funds market.

The Irish government-backed green finance group, Green IFSC, said the capital markets, investment banking and advisory services market needed to support a low-carbon economy is set to grow fourfold to over $1trn by 2020. The market includes funding of renewable energy generation, energy efficiency measures, trading and management of carbon and cleantech/sustainable funds.
“Ireland is already emerging as a world leader in green finance,” Kenny said. “The establishment of this network can only serve to accelerate the continued growth and copper-fasten Ireland’s growing reputation in this sector.”It said ‘green’ assets under management in Ireland doubled in the last year and tripled in the past four. There is now more than $10bn managed or serviced in Ireland.

The initiative has the backing of companies such as $3.5trn funds giant BlackRock, asset servicing bank BNY Mellon and consulting firm KPMG.

“Ireland is emerging as a world leader in green finance”

“We have an incredible pool of talent who have worked in this industry all over the globe,” said Jim Barry, Chief Investment Officer at BlackRock Renewable Power Group, which is based in Dublin. “This was one of the key reasons why BlackRock came to Ireland to source a large part of its investment team for its renewable energy platform.”
Last month Ireland became the first country in the world to to recognise forest carbon credits in tax legislation. The 2012 Finance Bill extends the range of carbon offsets that an investment company can acquire, to explicitly include forest carbon credits.