Munich Re to invest 2.5 billion Euro in renewable energy

Handelsblatt reports that the World’s largest reinsurance company Munich Re wants to invest about 2.5 billion Euro in renewable energy over the next couple of years.

The reason for that is that these investments are expected to create a reliable long-term income. In contrast, stocks can swing wildly and bonds are not attractive because of very low interest rates (one might add stronger default risks as a consequence of the euro crisis).

2.5 billion Euro would still be only about 1.18% of the total Munich Re investments (212 billion).

Munich Re is also involved in the Desertec Industrial Initiative. Maybe some of that 2.5 billion will flow into some project in North Africa or the Middle East.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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