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Hanaa Siddiqi

Retail Investors Poised to Raise £200 Billion for Low-Carbon Energy Revolution




In the realm of financial possibilities, a transformative tide is swelling. New research from Thrive Renewables illuminates this potential surge, revealing that retail investors, those everyday individuals who engage with the markets through brokers, banks, or mutual funds, could become the catalyst for unlocking an astounding £214.4 billion of the grand £300 billion required to fortify the low-carbon energy infrastructure – a critical milestone on the path to achieving net-zero emissions by the elusive year of 2050.


In the world of numbers and personal values, Thrive Renewables surveyed a diverse pool of 3,000 adults. Intriguingly, nearly half of these individuals, 49 per cent to be precise, had already dipped their toes into the world of investments. The remarkable twist here is that when asked about their preferences, these investors were ready to channel an astonishing 22.7 per cent more of their financial might into opportunities that resonate with their core beliefs.


Now, let's dive deeper into the financial kaleidoscope. Picture an average retail investor with a tidy sum of £36,248.50 stashed away in the world of investments. Hold that thought for a moment. Thrive Renewables then crunched the numbers, and the result is a staggering revelation – these everyday investors could be poised to steer a substantial £8,229.41 toward impact investments, aligning their financial prowess with their desire for meaningful change.


Yet, amidst this promising tableau, a shadow looms. Concerns about the murky waters of greenwashing and the scarcity of reliable information on impact investments cast a veil of hesitation over these eager investors.


Managing director of Thrive Renewables, Matthew Clayton, said the financial and clean energy industry had to better " characterise what we're delivering, " which he defined as "long-term investment opportunities that also answer a societal need."


In this multifaceted landscape, the youth are leading the charge towards sustainability. A notable 33 per cent of their investment portfolios are devoted to impacting investments, eclipsing the 24 per cent of other age groups. In stark contrast, the seasoned over 55s remain hesitant to wade into impact-focused investments despite their financial acumen and penchant for long-term returns.


The financial horizon beckons with untapped potential, and the fusion of retail investors' aspirations, industry clarity, and green energy's promise could turn the tide towards a greener, more sustainable future.


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