A recent OECD report on infrastructure (see OECD 2011b) notes that in order to promote infrastructure investment by pension funds, a better alignment of interests between pension funds and the infrastructure industry is required in terms of: fees (which are too high); the structure of funds (which are too concentrated); and the investment horizon (which is too short). Improvements on these fronts would also help improve the deal flow into green projects. As discussed, it is only through providing stable investments via low risk instruments that the broad universe of pension assets will be tapped. In addition to incentives, governments.
