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Researchers reveal key obstacle slowing global technology rollout: 'Further progress is needed'

"Our study shows that [it] is still on the minds of investors."

"Our study shows that [it] is still on the minds of investors."

Photo Credit: iStock

Very recently, America's move toward more sustainable energy and less pollution has stalled thanks to shifts in the political landscape. However, Europe and Asia are still on course to clean up their industries and may even see economic benefits, per a Sustainable Investment article translated from German and shared by Springer Professional.

Sustainable Investment reported that America has made a sharp turn in its energy policy. Where the previous administration held back on liquefied natural gas out of concern for the environment, President Donald Trump is moving forward with LNG terminals, as well as doubling down on domestic oil. 

The Federal Reserve has left the Network for the Greening of the Financial System, and investors are withdrawing from other climate alliances.

Graham Steele, former Deputy Assistant Secretary for Financial Institutions with the U.S. Treasury, said the Federal Reserve's withdrawal was a "response to short-term political considerations," Sustainable Investment reported.

By contrast, investors and governments in Europe and Asia are still heavily interested in reducing heat-trapping air pollution and other forms of environmental damage. 

Sustainable Investment cited fund manager Fidelity International's study, the "Professional Investor DNA Survey," which revealed that out of over 120 institutional investors, 63% listed the environment as their top priority — specifically the reduction of heat-trapping carbon pollution, energy system transformation, and the conservation of natural resources.

"Our study shows that ESG is still on the minds of investors," said Jenn-Hui Tan, Chief Sustainability Officer at Fidelity International, per Sustainable Investment. "Even though ESG investments are now integrated into asset allocation, further progress is needed to reduce implementation barriers."

Further research by the German Institute for Economic Research in Berlin identified America's retreat on this issue as an opportunity for the German clean energy sector to step up and strengthen the domestic market, Sustainable Investment revealed. Other European and Asian countries could do the same, benefitting their economies and the world.

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