Ceres | New Energy Finance (Free download with registration)
[Green Energy Congress] To reach the level of investment in new renewable power generation needed to avert dangerous climate change, $12.1 trillion of investment will be needed over the next 25 years—$5.2 trillion above business-as-usual projections—according to a new report by Ceres and Bloomberg New Energy Finance.
The report, Mapping the Gap: Road from Paris, was announced at the UN Investor Summit on Climate Risk, a gathering of 500 global investors this week organized by Ceres, the United Nations Foundation and the United Nations Office of Partnerships.
Among the report’s key highlights:
- Achieving the Paris climate agreement’s goal to limit global temperature rise to below 2 degrees Celsius will require $12.1 trillion investment in new renewable power globally over the next 25 years. This includes an additional $5.2 trillion of investment in wind, solar, geothermal and other zero-emission power sources, or an extra $208 billion a year, above and beyond the $6.9 trillion under business-as-usual projections.
- A majority of this $12.1 trillion in new renewable power generation is expected to go to emerging markets in developing countries.
- The investment surge will require a greatly expanded use of investment vehicles supporting clean energy, including bonds, asset-backed securities and others of which commercial financiers, institutional investors and other capital market players can take advantage.
- The average new annual global investment opportunity for new renewable energy is about the same amount as US customers borrow annually for car loans…