Ireland launches Global Green Asset Management Network at Ireland Day Summit in New York Stock Exchange
Ireland has set out its stall to be the global leader in the fast growing $260 billion global green asset management sector with the country’s Prime Minister and US managers welcoming the launch of the Global Green Asset Management Network at the New York Stock Exchange.
‘Green Asset Management’ refers to capital markets, investment banking activities and related advisory services which support the development, finance and promotion of a low-carbon economy. It includes funding of renewable energy generation, energy efficiency measures, trading and management of carbon and cleantech/sustainable funds. The sector is predicted to grow fourfold to over $1 trillion by 2020.
The Green IFSC’s Global Green Asset Management Network aims to accelerate the growth of Ireland’s green asset management cluster by developing a forum for all market practitioners in the industry through which a consensus on regulatory, legislative and educational needs can be addressed through engagement with government, state bodies and other industry groups both nationally and internationally.
Irish Prime Minister Enda Kenny, who rang the opening bell and addressed the second Ireland Day Summit at the New York Stock Exchange, today, Monday, March 19, said:
“I launched the strategy for Ireland’s International Financial Services Centre (IFSC) 2011 – 2016 in July of last year. That strategy commits to developing Ireland as a centre of excellence in green finance. Today with the launch of Green IFSC’s Global Green Asset Management Network we are taking a further step forward towards achieving that goal.
“Irish green asset management and green enterprise firms are active all over the globe from China to Chile and Ireland to Africa and, with $10 billion in green assets managed or serviced, Ireland is already emerging as a world leader in green finance. The establishment of this network can only serve to accelerate the continued growth and copper-fasten Ireland’s growing reputation in this sector.”
Dublin-based Jim Barry, Chief Investment Officer, Blackrock Renewable Power Group, concurred:
“I believe Ireland can become a global leader in the green asset management space. We have an incredible pool of talent who have worked in this industry all over the globe. 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.”
BNY Mellon’s Brian Ruane, CEO Alternative and Broker-Dealer Services, added:
“Ireland has a world class international financial services centre, innovative enterprise companies with global networks, one of the best business environments in the world, a wealth of natural resources and an emerging talent pool of green finance specialists. Combined, Ireland has all the ingredients to emerge as a global leader in green finance.”
Michael Hayes, KPMG, a member of the Green IFSC Initiative Steering Group, explained:
“Ireland is quickly emerging as the global leader in green asset management. There is no reason why Ireland cannot repeat the success it has had in the financial services sector with the IFSC, particularly in areas such as funds and aircraft leasing. Our vision is that Ireland will become the global centre of excellence for green finance.”
Mr Hayes added: “This year the IFSC celebrates 25 years of business and now embraces global insurance and reinsurance, nearly all the world’s international banks, the world’s number two aircraft leasing center and a world class funds sector. In fact, the Irish funds industry, from a standing start just over 22 years ago now administers close to €2 trillion in global assets.
“Leveraging off 25 years of excellence and experience, Ireland is seeking to replicate this impressive growth in the rapidly growing green finance sector and the Global Green Asset Management Network will play a key role in accelerating this growth.“
There are considerable practical benefits to using Ireland for US private equity and other funds. Many of these managers require a European hub with a talented pool of professionals who understand the green space at a European level.
Furthermore, Ireland has emerged as a global leader for international financial funds with some €2 trillion assets under administration and is the world’s number one hedge fund centre and the fastest growing UCITS domicile – up 500 per cent in 11 years. In 2011 Ireland attracted twice as much new monies in UCITS as all others put together.
Thirdly, the fact that Ireland offers a regulated structure is important in helping funds managed by US managers attract EU institutional investors. And, EU regulation AIFMD and Dodd Frank in the US are likely to further precipitate moves to the regulated structures with a proven track record which Ireland offers.
The first US meeting of the Green IFSC’s Global Green Asset Management Network will take place in New York in May in partnership with the Irish Consulate to discuss with green asset managers why Ireland may offer the ideal location and services for their businesses.