WASHINGTON POST: A SURGE IN GREEN FINANCE BOOSTS CLIMATE BUSINESSES
Investors are leading the charge
Good news! Investment in projects linked to climate change are becoming mainstream, says Steven Mufson, business-of-climate-change writer for the Washington Post. In a recent article, Mufson writes, “As the cost of renewable energy plummets and awareness of the magnitude of climate change grows, market forces are luring investors into all sorts of “green” finance, nearly doubling the size of green bonds and green equity funds.”
Much of this financing continues to go toward traditional renewable energy, which still provides just 17 percent of the energy used by the U.S. electricity grid. But momentum is in the right direction. The article quotes John Tough, managing partner of Energize Ventures, a climate change-oriented venture capital firm as saying, “Every single asset manager is looking to get away from carbon projects.” This is happening at the same time as President Biden promises to commit $2 trillion of climate-related spending over the next four years.
Read the full article here.
TOP DISTRIBUTED RE TRENDS FOR 2021
Every new year, industry analysts identify important trends they see as impacting growth and change in the renewables sector. Two excellent podcasts from Power for All offer insights from Takehiro Kawahara of Bloomberg New Energy Finance, and Benjamin Attia, senior research analyst at Wood Mackenzie, who discuss developments to watch in 2021.
For Kawahara, one of the biggest trends is increased engagement by large corporates, which are “not just investing in the sector anymore, but … also getting involved as … main players.” He also cites changes in the C&I solar space, particularly significant market expansion on solar for C&I consumers in Sub-Saharan Africa. “Solar for health is another big thing,” he says, in light of the ongoing COVID crisis.
Attia anticipates some ‘backwards progress’ … as a result of COVID,” largely due to increased poverty levels worldwide. Like Kawahara, he focuses on the C&I segment, calling it “a ‘gateway drug’ for investors.” His third trend is the inevitable collision of the off-grid and grid worlds, the changing role of public utilities, and implications for the future of grid extension.
Both podcasts are well worth a listen.