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Mark Gilbert

Throwing Retirees’ Money Into the Sea

Pensioners shouldn't be funding big and untested renewable energy projects.

One day, all this could be electricity.

One day, all this could be electricity.

Photographer: Chris Ratcliffe/Bloomberg

They should be an ideal investment for a pension fund. Renewable energy infrastructure projects are typically long-dated, environmentally friendly, and offer returns that are uncorrelated with the gyrations of financial markets.

But the potential rewards have to be commensurate with the risks — and pension plans shouldn’t be in the business of chancing their precious capital to persuade governments to subsidize innovative technology.