Investors in renewable energy firms have seen significantly higher returns than backers of fossil fuel businesses over the past decade, according to new research.
The study by Imperial College London in collaboration with the International Energy Agency found shares in stock market listed renewables firms have outperformed fossil fuel stocks in the US, UK, Germany, and France over the past decade.
They have also shown more resilience during the coronavirus pandemic.
In the US, renewable power stocks rose over 200 per cent between 2010 and 2020, more than double the total gains for fossil fuel stocks, which climbed 97 per cent.
However, Dr Charles Donovan, executive director of the Centre for Climate Finance and Investment at Imperial College Business School, said opportunities to back clean power remain limited for individual investors.
"There's momentum gathering behind renewable power, based on its economic advantages," said Donovan. "Our results show that renewable power is outperforming financially, but has still not attracted sizable support from listed equity investors."
He added: "Existing norms in the investment industry will have to change to provide savers and pensioners with better ways to participate in the upsides from a clean energy transition."