Quantcast
Insights

Paris Agreement Unleashes $16 Trillion of Investment in Renewables and Cleantech

If you ever needed proof that we are truly embarking on a renewable energy revolution, then look no further than the latest report from one of the most respected credit ratings agencies in the world.

According to Standard & Poor’s latest analysis, the Paris Agreement, signed last month during COP21, will unleash more than $16 trillion of investments for renewable energy and clean technologies.

The report predicts that as a result of the Paris Agreement, the market for renewables, clean tech and green finance could take off because almost all of the plans submitted by the 195 countries mention renewables in their commitments. In fact, the pledges mentioned by China and India alone could potentially double the world's wind and solar capacity within 15 years.

The agency expects that investments will move more quickly into renewables and new business models, with a focus on providing more energy efficiency solutions to consumers globally. They also expect this energy transition to shake the industry's fundamentals over the coming years. In other words, the energy sector will undergo a dramatic and major transformation as never seen before.

“As the costs of renewable energy and other zero and low-carbon technologies continue to fall and more clean technological breakthroughs are unveiled, political pressure against supporting the initial cost of such a transformation should continue to ease and incentives for development should persist,” the report says.

This mega trend is supported by many new initiatives that were launched during COP21 such as Dubai committing to sourcing 25 percent of power generation from solar by 2030 and 75 percent by 2050, with a $27 billion Dubai Green Fund to support it. The International Solar Alliance by India and France, backed by 120 other governments, which aims to provide $1 trillion of solar investment, representing 1 terawatt (1,000 GW) of capacity, by 2030, is also a good example of this increase in finance for renewables.

To support this transition, a UN backed initiative was launched called the Green Infrastructure Investment Coalition. It aims to help investors understand the pipeline of green infrastructure investments as well as shape capital market instruments to ensure capital flows. The idea is to scale up the green bond market from its current $40 billion to the $1 trillion needed to fund low-carbon infrastructure.

This is all good news for consumers as well, as “Big leaps in energy innovation, cheaper renewables and the more efficient use of power—have reduced carbon emissions over the past 15 years without substantial increases in cost to end users.”

This latest renewable energy investment prediction is unprecedented and now that these market signals have been triggered, it’s up to governments and the corporate sector to start implementing this massive transition.

YOU MIGHT ALSO LIKE 

World’s Top Carbon Reserves That Must Be Kept in the Ground to Prevent Climate Chaos

Record-Breaking Snowfall Dumps on East Coast

Carbon Capture: ‘Only Realistic and Affordable Way to Dramatically Reduce Emissions’

Find Out How Close Your City Is to Going 100% Clean Energy

Show Comments ()

EcoWatch Daily Newsletter

Sponsored
Climate
Pexels

Cosmos Offers Clues to the Fate of Humans on Earth

By Marlene Cimons

Astrophysicist Adam Frank sees climate change through a cosmic lens. He believes our present civilization isn't the first to burn up its resources—and won't be the last. Moreover, he thinks it's possible the same burnout fate already might have befallen alien worlds. That's why he says the current conversation about climate change is all wrong. "We shouldn't be talking about saving the planet, because the Earth will go on without us," he said. "We should be talking about saving ourselves."

Keep reading... Show less
Popular
Chicago skyline on April 20, 2017. Chris Favero / CC BY-SA 2.0

Big Cities, Bright Lights: Ranking the Worst Light Pollution on Earth

By Dipika Kadaba

The amount of artificial lighting is steadily increasing every year around the planet. It's a cause for celebration in remote villages in Africa and the Indian sub-continent that recently gained access to electricity for the first time, but it is also harming the health and well-being of residents of megacities elsewhere that continue to get bigger and brighter every year.

Health impacts of this artificial illumination after daylight hours range from depression to cancer, including a range of sleep disorders.

Keep reading... Show less
Business
velkr0 / Flickr / CC BY 2.0

Texas Supreme Court Rules Cities Cannot Ban Plastic Bags

The Texas Supreme Court struck down the city of Laredo's plastic bag ban—a decision that will likely overturn similar bans in about a dozen other cities, including Austin, Fort Stockton and Port Aransas.

Keep reading... Show less
Politics
Ryan Zinke visits Wall Drug in Wall, South Dakota on May 25. Sherman Hogue / U.S. Dept. of the Interior

Report: Trump Admin. Suppressing Media Access of Government Scientists

A new Trump administration protocol requires U.S. Geological Survey (USGS) scientists to run interview requests with the Department of the Interior, its parent agency, before speaking to journalists, the Los Angeles Times reported.

The move is a departure from past media practices that allowed government scientists to quickly respond to journalists' inquiries, according to unnamed USGS employees interviewed by the Times.

Keep reading... Show less
Sponsored
Climate
Icebergs calving from an ice shelf in West Antarctica. NASA / GSFC / Jefferson Beck / CC BY-SA 2.0

Good News From Antarctica: Rising Bedrock Could Save Vulnerable Ice Sheet

After last week's disturbing news that ice melt in Antarctica has tripled in the last five years, another study published Thursday offers some surprising good news for the South Pole and its vulnerable West Antarctic Ice Sheet (WAIS).

The study, published in Science by an international research team, found that the bedrock below the WAIS is rising, a process known as "uplift," at record rates as melting ice removes weight, potentially stabilizing the ice sheet that scientists feared would be lost to climate change.

Keep reading... Show less
GMO
Soybeans with cupped leaves, a symptom of dicamba injury. University of Arkansas System Division of Agriculture / Flickr / CC BY-NC 2.0

Dicamba Damage Roars Back for Third Season in a Row

University weed scientists have reported roughly 383,000 acres of soybean injured by a weedkiller called dicamba so far in 2018, according to University of Missouri plant sciences professor, Kevin Bradley.

Dicamba destroys mostly everything in its path except the crops that are genetically engineered (GE) to resist it. The drift-prone chemical can be picked up by the wind and land on neighboring non-target fields. Plants exposed to the chemical are left wrinkled, cupped or stunted in growth.

Keep reading... Show less
Sponsored
Food
Memphis Meats

FDA Takes First Steps to Regulating Lab-Grown Meat

By Dan Nosowitz

Lab-grown meat—also known as cultured meat or in vitro meat—has long been enticing for its potential environmental, social and economic benefits.

Keep reading... Show less
Politics
Scott Pruitt speaking at meeting at the USDA headquarters in Washington, DC, on Jan. 17. Lance Cheung / USDA

Breaking: Sierra Club Demands Pruitt’s Emails After Only 1 Disclosed by EPA

As part of ongoing litigation, the Sierra Club has demanded that the U.S. Environmental Protection Agency (EPA) search Scott Pruitt's personal email accounts for work-related emails, or certify clearly and definitively that the administrator has never used personal email for work purposes. The demand comes on the heels of a successfully litigated Freedom of Information Act (FOIA) request for all of EPA Administrator Scott Pruitt's email and other communications with all persons and parties outside the executive branch. These facts were first reported in Politico early this morning.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!