Why green energy and ethical projects are not always wise investments
Given the current widespread media coverage of the climate crisis, it seems like it should be safe to assume that investing your pension in green energy or ethical projects is a wise financial move.
From green oil plantations in exotic locations and ethical forestry to wind farms and solar panels closer to home, there are a wide variety of investment opportunities available. And it’s easy to understand the appeal of helping to create a greener, cleaner world while also growing your pension pot.
Sadly, many of these investments have failed to live up to their promises, leaving investors out of pocket and facing a financially insecure retirement. Recent examples of disastrous projects like this include:
A risky, unreliable investment
Many green energy and ethical project investments are not regulated by the Financial Conduct Authority (FCA) or covered by the Financial Services Compensation Scheme (FSCS). This means that in the unfortunate event the project closes down, or worse, turns out to be fraudulent, investors are left in a very vulnerable position with little hope of recovering their money.
Despite being advertised as the way of the future, green energy is also a notoriously unstable industry dictated in the main by fluctuations in oil and gas prices. Consequently, the value of investments could plummet at any time and there is very little investors can do to mitigate this.
Due to these risk factors, green energy and ethical project investments are generally considered unsuitable for most normal investors. Unfortunately, many pension holders have been wrongly persuaded to invest in unregulated projects like these via a SIPP by untrustworthy advisers chasing high commissions.
If you are new to investing, earn less than £100,000 a year and did not fully understand the risks of a SIPP or associated investments before signing up then it’s possible you have been a victim of this dishonest and unprofessional practice.
We know how devastating it is to realise that you have unintentionally put your pension funds in jeopardy and are committed to helping anyone who has found themselves in such a situation. If you have lost money as a result of investing in green energy or ethical projects call our specialist advisers on 0800 193 1234 to see how they can help you.