GIC Says US-China Tensions Will Drive Up Costs for Renewables

Geopolitical tensions between the US and China are inflationary and will weigh on renewable projects, according to one of the world’s largest sovereign wealth funds.

Developers and investors typically look for “the most cost efficient way” to procure their equipment and develop projects, Mark Lim, vice president for Asia and emerging markets infrastructure at GIC Pte, said at the Asia Infrastructure Forum in Singapore Tuesday.

With tariffs and bans, “your cost base will look very different,” Lim said. It’s a “developing risk area” that’s “inflationary in nature.”

The Biden administration last month announced plans to raise tariffs on ...