How Close is the World to $1 Trillion in Renewable Energy Investments?
Some bankers across the world are aiming high when it comes to investments in renewable energy.
Billionaire investors and climate-focused policy advocates like hedge-fund founder billionaire Tom Steyer and former U.S. Treasury Secretary Robert Rubin gathered at the United Nations this week to call for more investments in renewables and changes to financial markets that would boost investments, according to Bloomberg.
The figure they had in mind? $1 trillion per year—dubbed a "Clean Trillion" by Ceres and others.
Some in the financial and energy industries believe that's what it will take in order to limit global warming to 2 degrees Celsius. As it stands now, global invests in clean energy must double by 2020 and once again in order to reach that goal.
In 2013, the global investment amount in solar, wind and other clean forms of energy was $254 billion, down 12 percent from $281 billion in the prior year. In 2011, record levels were set at $318 billion.
"What we need to have invested in the energy sector and in the green infrastructure in order to make the transformation that we need in order to stay within [2 degrees Celsius of global temperature rise] is $1 trillion a year and we are way, way behind that," Christiana Figueres, UN climate chief, told The Guardian. "Last year, we had $300 billion, and in the same year we had double that amount invested in exploration and mining in fossil fuels. So you can see that the ratio is not where it needs to be. We need to be at the opposite ratio."
According to Ceres, the world needs to invest an additional $36 trillion in clean energy for the next 36 years. The organization suggests it's actually possible, regardless how daunting it sounds, businesses, investors and policymakers band together. Here are some of the organization's proposals:
- Pension funds and other institutional investors should commit to a goal of investing 5 percent of their portfolios in clean energy. That amount is less than 1 percent at the moment, according to the Organization for Economic Co-operation and Development.
- Investors should more closely scrutinize companies that emit high levels of carbon dioxide.
- Banks should create simple investment tools that help investors access the market. For example, Elon Musk's SolarCity will introduce an online investment system within six months.
Ceres also calls for policymakers to form a new global climate change agreement by 2015, and establish polices that put a limit and price on greenhouse gas emissions.
"Cost competitive renewable technologies and attractive investment opportunities exist right now, but we're still not seeing clean energy deployment at the scale we need to put a dent in climate change," said Mindy Lubber, the president of Ceres, which organised this week's summit.
"We need to find a way to get more institutional investor capital into this space."
Visit EcoWatch’s RENEWABLES page for more related news on this topic.
Disturbing footage of a snake in Goa, India vomiting an empty soft drink bottle highlights the world's mounting plastic pollution crisis.
By Melissa Hellmann
When her eldest son was in elementary school in the Oakland Unified School District, Ruth Woodruff became alarmed by the meals he was being served at school. A lot of it was frozen, processed foods, packed with preservatives. At home, she was feeding her children locally sourced, organic foods.
By James O'Hare
There are 20 million people in the world facing famine in South Sudan, Somalia, Nigeria and Yemen. In developed nations, too, people go hungry. Venezuela, for instance, is enduring food insecurity on a national level as a result of economic crisis and political corruption. In the U.S., the land of supposed excess, 12.7 percent of households were food insecure in 2015, meaning they didn't know where their next meal would come from.
Artists are taking the climate crisis into frame and the results are emotional, beautiful and stirring.
So you've seen the best climate change cartoons and shared them with your friends. You've showed your family the infographics on climate change and health, infographics on how the grid works and infographics about clean, renewable energy. You've even forwarded these official National Oceanic and Atmospheric Administration graphs that explain the 10 clear indicators of climate change to your colleagues at the office.
As the Trump administration moves full speed ahead on boosting the oil and fossil fuel industry, opposition to increased pipeline construction is cropping up in different communities around the country.
By Simon Evans
Last Saturday, two dead whales washed up on the coast of Suffolk, in eastern England, and a third was spotted floating at sea.
What happened next illustrates how news can spread and evolve into misinformation, when reported by journalists rushing to publish before confirming basic facts or sourcing their own quotes.
By Monica Amarelo and Paul Pestano
Sun safety is a crucial part of any outdoor activity for kids, and sunscreen can help protect children's skin from harmful ultraviolet rays. Kids often get sunburned when they're outside unprotected for longer than expected. Parents need to plan ahead and keep sun protection handy in their cars or bags.
By Joe McCarthy
A lot of people take part in community clean-up efforts—spending a Saturday morning picking up litter in a park, mowing an overgrown field or painting a fence.