SWFs to back alternative energy development

Representatives of the world’s sovereign wealth funds met in the Azerbaijan capital Baku on Thursday to discuss policy and prospects in the post-crisis environment, amid calls for greater transparency in SWF dealings, and use of their huge wealth to promote alternative energy projects.

SWF leaders reiterated their commitment to the Santiago principles, agreed under the auspices of the International Monetary Fund, for openness and accountability in SWF dealings. These had come under fire in the wake of investments by Middle East and Asian funds in western financial institutions before the onset of the global financial crisis.

The Baku meetings – held under the banner “Global prospects and local challenges” – also heard calls for greater use of SWF resources to promote investment in renewable energy sources. “I would like to see more investment in renewable energy,” said Alastair Newton of Nomura International on the eve of the Baku meetings. “SWFs could make concrete contributons in moving to a low carbon economy,” he told a Qatari newspaper.