U.S. and Asian investors are increasingly turning their attention to Europe for green investment opportunities, according to Tony Dalwood, CEO of Gresham House, an investment management firm. This shift comes in response to a decline in U.S. government support for domestic renewable energy projects following policy changes by the Trump administration. The cessation of tax credits for green energy initiatives, implemented earlier than scheduled, has prompted investors to explore options in Europe.
Dalwood remarked during a Reuters NEXT Newsmaker event that U.S. investors are eager to engage with European markets, particularly in sectors such as infrastructure, energy transition, and natural capital. He noted that this trend is also observable among Asian investors, who are reevaluating their investment strategies that previously favored North America.
The British government’s recent commitment to green energy, articulated in an Industrial Strategy, aims to increase investment in clean energy to over £30 billion ($41.23 billion) annually by 2035. While the government has pledged to support this transition, it also seeks to alleviate business burdens by reducing green levies, reflecting political pressures regarding the costs associated with the energy transition.
Dalwood highlighted the importance of the UK’s backing for green initiatives as a catalyst for the growth of the natural capital market. Investments in sustainable forestry, agriculture, biodiversity, carbon sequestration, and water management are areas of significant interest, as investors strive to achieve sustainability targets. He noted that some clients have shifted their asset allocations towards natural capital, increasing from zero to 4% over the past year, with forestry representing a substantial component of this growth. Dalwood anticipates that this figure will continue to rise in the future.
With approximately $12 billion in assets under management, Gresham House stands as the largest commercial forestry manager in Britain, positioning itself to capitalize on these emerging investment trends. The firm’s focus on natural capital aligns with the growing recognition of environmental sustainability as a priority for investors worldwide.
