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HomeFinance and AccountingBusiness InvestmentThree notable investing case studies

Three notable investing case studies

Investment on a global scale requires a combination of private and public investments. Without the right incentives designed by the government, global and social change will halt. Green energy, regional development and social projects can profit and improve the lives of those within each community, but upstart investment costs and risk of new technologies halts investors from putting their money towards a better future. As these three case studies have outlined, there are methods to be used when investing to ensure the right projects are funded for the betterment of UK and EU citizens.

World Economic Forum Green Investment Report Case Study

Government investment and public incentives are necessary criteria to boost green technology projects in the UK. This case study focuses on Walney Offshore Windfarms, a £1.3 billion 367.2 megawatt offshore wind farm in the UK. The project, however, had much difficulty in acquiring investment back in 2007, due to the increased risk of the wind farm being located offshore. This issue was rectified with policy and financial incentives like tradeable green energy certificates, which would provide 60% of the wind farm’s revenues. This among other incentives added up to £1.3 billion in investment. On top of this investment was an additional £1.3 to £1.5 billion to be paid out throughout the life of the wind farm through the UK’s Renewable Obligation Certificate scheme.

·         Impacts

The issues with investment in this case study derived primarily due to the lack of confidence by European banks due to the economic crisis at the time. Green energy investment is an important sector, and yet economic downturn restricts investment. It means that all past and future economic changes, as IG outlines in their easy-to-understand timelines, impact investment opportunities. Governments will need to provide additional schemes and investment opportunities to encourage what are seen as risky investments into green energy to meet their 2020, 2030, and finally their 2050 goal of cutting emissions by 80 to 95% of the 1990 levels.

European Social Fund Case Study

£1.59 billion has been allocated to over 350 projects in the European Social Fund Case Study. This study outlines several smaller cases where investment has been used to promote the local economy, create, and sustain jobs within the UK.

·         Impacts

Disruption to traditional industries and an increasing need to innovate for future developments has meant that the projects that are invested into have become more nuanced and wide-reaching in their scope.

European Regional Development Fund Case Study

For the 2014 to 2020 year in England the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the European Agricultural Fund for Rural Development (EAFRD) have joined together. The fund total is £6 billion and is being used primarily to support UK-wide low carbon shift, research and innovation, small and medium-sized enterprises, and information and communication technologies. The case study outlines where the money was allocated and the effects this investment has had on local economies.

·         Impacts

The way the European Regional Development fund is dispersed depends greatly on the social focusses at the time. In previous years reducing carbon emissions was not a priority, however in recent years following creation and commitment to the SDGs as outlined by the UN.

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