Global investment in green technology is gathering pace, and government commitments ahead of the Paris climate talks are adding to the momentum
The prospect of more than 150 countries including China and India committing to sharp cuts in carbon emissions – at the same time as renewable energy becomes ever more price competitive – has galvanised the green finance sector.
With hopes high for a new climate change deal in December, major banks such as Goldman Sachs have pledged to invest billions of dollars, directly or indirectly, into clean energy and adaptation schemes. Background sentiment is also increasingly positive as major institutions such as the International Monetary Fund (IMF) and Bank of England throw their weight behind the UN’s climate goals.
Some of the world’s most powerful political leaders have already tied up political capital in a successful outcome from the COP21 talks in Paris, and are seen as likely to be more willing to compromise than during the failed Copenhagen process six years ago. The overall aim is to agree measures that limit global warming to 2°C.
Further underpinning has come from the US-China deal on climate change struck in 2014 and the EU’s 2030 climate-energy framework, as well as the US Clean Power Plan and other national strategies around the world.