ESG investors face new challenge as tighter regulation leads to greenflation

Investors can reap benefits

Pedro Gonçalves
clock • 4 min read
A single onshore wind turbine requires more than four tons of copper
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A single onshore wind turbine requires more than four tons of copper

Climate change is rising up the global political agenda and many governments are committing to ambitious environmental targets, but the push towards a greener economy is spurring demand as it tightens supply, leaving investors to navigate greenflation.

An array of countries and nearly 1,400 companies with a combined revenue of over $11.4trn aim to cut net carbon-dioxide emissions to zero in the coming decades, according to a report by NewClimate Institute. This push for a green economy is increasing demand for materials needed to build a cleaner future. Renewable energy generation is up to five times more copper intensive than conventional power, according to Calamos research.  Building a single 100-megawatt wind farm requires 30,000 tons of iron ore, 50,000 tons of concrete, and 900 tons of non-recyclable plastic for the blades. A ...

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