Investor Immigrant category an opportunity for Alternative Energy
PARTNERS FOR CLEAN ENERGY
Smart money for green energy goes to Canada, United States and Australia, if you are an investor who is willing to immigrate to any of those countries. Each nation offers immigrants willing to invest in that country an opportunity to apply for visas under a special category, predicated on being willing to invest amounts ranging from $400,000 to $1,500,000.
Both the USA and Canada offer preferential consideration for those immigrants willing to set up business or invest in rural communities. All three countries place a premium on investments in innovative technology and renewable energy projects. In Canada, immigrant investors may qualify if they invest either $800,000 in urban or $400,000 in rural business development. In the USA, their $1,000,000 investment requirement is reduced to $500,000 if the applicant invests in designated rural areas or areas of high unemployment.
Astute rural business leaders see this as an opportunity to actively recruit overseas investment, and to develop strategic partnerships. With access to government grants and favourable loans for renewable energy projects and rural initiatives, the timing is ideal to solicit partnerships with overseas investors. Unfortunately, the slow pace with which all immigration applications are processed (most waits start at 9-12 months, increasing significantly, depending upon the class of application) means that many of opportunities for investment by out-of-country investors under the various immigration programs of each country are several years away.
There is a window of opportunity, though. Investors may bring in money prior to being approved for visas. While this money may not count as part of the required seed funds that they must show they possess, the investment itself may be used to leverage local funding, develop the business, and generate additional capital. Thus, the investor and the rural partner gain.
In Canada, investors and immigrants applying under the Business category may be expected to conduct a preliminary visit to the province in which they are seeking nomination for immigration. On occasion, these recruits have established businesses or invested in a business in Canada, then opted to remain in their country of origin. This practice is more prevalent with Asian, and, in particular, Chinese investors.
In the USA, Regional Centers have been set up to stimulate local growth. 5,000 of the 10,000 investor visas to be approved each year are set aside for these regional centers to facilitate recruitment of prospective investor immigrants.
By merging incentives offered through the regional centers with immigrant investment and federal and state funding for renewable energy projects, rural communities are provided with significant tools for generating investment in alternative energy projects.
In Australia, as in Canada, investor immigrants need to seek sponsorship from local territorial or state governments to enhance their chances of successfully applying as immigrant investors. However, funding for biofuels projects is somewhat limited, with a requirement that applicants for capital grants produce a minimum of 5 million litres per year. Of the six plants sharing $31.7 million recently, only one was locally owned. Other renewable and alternative energy initiatives fare somewhat better. The Renewable Energy Target, passed in 2009, projects more than $20 billion in renewable energy investment, creating 28,000 jobs. To achieve this goal, partnerships with overseas business will be needed. Immigrant investment is a key component of that development strategy.
While other countries offer myriad programs to stimulate investment, it is the leadership of these 3 nations in recruiting investment and investors to alternative energy that will set them apart over the next decade, and provide a huge opportunity for those investors wishing to emigrate from their countries of origin.
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