Sustainable Infrastructure

Ecofin's sustainable infrastructure capabilities provide globally diversified exposure to listed renewable infrastructure and equity securities of growth-oriented economic infrastructure businesses.

Accelerated investments in renewables years and changes in government policy in recent years is leading to increased rates of adoption. Meanwhile, most of our infrastructure related to airports, roads, water and power was built post WW2 and a significant proportion is obsolete, in poor condition or inadequate to cope with the rapid development of renewable energies.

The investment requirement is about $3.7 trillion each year just to keep pace with projected GDP growth and up to $4.6 trillion each year to meet the UN's sustainable development goal*.

Commentary Sustainable Infrastructure 4/08/2020

Globalisation 2.0: The rise of electricity demand

Electric & gas utilities

Generation, transmission & distribution of electricity, gas and liquid fuels and renewable energies

Transportation Services

Roads, railways, ports and airports

Sustainable project finance

  • Waste-to-energy projects
    • Landfill gas
    • Anaerobic digester
    • Biomass
  • Waste-to-value projects
    • Plastic recycling
    • Tire recycling
    • Food waste recycling

 

Digital Infrastructure

Global digital payments

  • merchant processing and settlement
  • real time record keeping
  • settlement networks
  • Fintech products/ services

Qualitative analysis

  • Company strategy and growth prospects
  • Business model and risk assessment
  • In-depth regulatory analysis
  • Management strength
  • ESG factors
  • Energy transition thematic

Quantitative analysis

  • Proprietary modelling of earnings and cash flows
  • Balance sheet strength and credit rating
  • Sensitivity analysis
  • Sustainability and carbon emissions assessment

Relative value analysis

  • Peer analysis
  • DCF, regulated asset base and multiple analysis
  • Total return approach: capital appreciation and dividend
    prospects
*Global Infrastructure Hub, Oxford Economics (electricity, airports, roads & rail, telecoms, sea ports)