Investment Opportunities in the Resources Sector

3rd September 2020

The transition from linear to circular business models is creating a new wave of innovation, investment, consolidation and opportunity within the waste and materials management sector. Harriet Parke leads the Transactional Services team at independent environmental consultancy Eunomia and recently published a guide for developers and investors. We asked her what those considering developments and investments in this space should consider when identifying and assessing opportunities.

New Investment Opportunities

Hattie said: “We’re seeing an increasing interest in development and investment opportunities in the waste and materials management sector. The direction of policy in this area is now clearer than it has been in several years, as Governments seek to address carbon targets and preserve material resources in the transition to a more circular economy. Furthermore, greater public attention to the global sustainability agenda has resulted in increasing demand for responsible and sustainable investments, alongside increasingly circular business models.”

Assessing Opportunities and Understanding Risk

“It’s really encouraging to see the growing interest in development and investment opportunities, but at the same time it’s important to recognise, understand and mitigate against the risks in an increasingly dynamic sector.”

“We’ve identified the top five key commercial considerations for developments and investments in waste and materials management infrastructure:

  • Quantity, suitability and availability of feedstocks across the lifespan of a facility.
  • Competitors, both current and future.
  • Market price points for both inputs and outputs.
  • Market security for outputs.
  • Regulatory drivers and risks.”

Knowing the Market

“To fully realise the investment opportunities presented, it is essential to understand and adequately assess these interrelated considerations of the complex markets in which these infrastructure assets operate.

To see an infrastructure landscape capable of meeting future demands to manage our resources sustainably, we need sound and considered investment decisions made now, leading to strong commercial performance in the future.”

Having provided environmental and commercial advice to public and private sector clients for the past two decades, our team is well informed to advise in these areas, and has put together a guide offering tips on where to start when considering these types of investments – read it here.