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 ()
Sponsored
Renewable Energy
Storage solutions, such as Tesla's Powerwall domestic battery, are "moving from the grid to the garage to the landing at home." Tesla Motors

Battery Storage Revolution Could 'Sound the Death Knell for Fossil Fuels'

If we want to accelerate the world's renewable energy transition, we'll have to modernize the electric grid and we'll need much better batteries. Just look at Germany, which generates so much clean energy on particularly windy and sunny days that electricity prices are often negative.

Sure this is good news for a German person's wallet, but as the New York Times noted, "Germany's power grid, like most others around the world, has not yet adapted to the increasing amounts of renewable energy being produced."

Keep reading... Show less

The Future of Food: 8 Business Leaders Investing to End Slaughterhouses

From Silicon Valley tech moguls to business executives and entrepreneurs, these people know that the future of food means not slaughtering animals.

Keep reading... Show less

Oil Spill Spreading in East China Sea 'Now the Size of Paris'

By Andy Rowell

There are increasing environmental and health concerns surrounding the oil spill in the East China Sea from the Iranian registered tanker, the Sanchi, which sank on Monday carrying 136,000 tons, or one million barrels, of a highly flammable oil mix called condensate.

The tanker had burned for a week before exploding after colliding with another ship on Jan. 6, with all 32 crew now presumed dead or missing.

Keep reading... Show less

‘Tide Pod Challenge’ Highlights Danger of Colorful Laundry Packets

By Samara Geller

An unbelievably dumb and extremely dangerous dare has gone viral on social media. It's the "Tide Pod Challenge": biting down on the small, colorful—and potentially poisonous—packets of liquid laundry detergent until they burst in your mouth. Children, teens and young adults are posting videos of themselves taking the challenge—with the gagging, spitting and coughing that follows.

Keep reading... Show less
Sponsored
Popular
Arizona lost out on $27 million of revenue during the 2013 government shutdown, with the Grand Canyon alone amounting for $17 million of it. Anna Irene / Flickr

National Parks, Monuments May Remain Open But Unstaffed if Government Shuts Down

You might want to reconsider your plans if you intend to visit a national park this weekend. While the park might be open, there probably won't be any rangers on site, which could pose a serious risk to safety.

The Trump administration is reportedly planning to keep many national parks and monuments open if the government shuts down on Friday, the Washington Post reported. The move is meant to avoid the public outrage sparked by the closure of parks and memorials during the 2013 shutdown.

Keep reading... Show less
Adventure

Divers Discover World’s Largest Flooded Cave

Diving enthusiasts, could this be your next great adventure?

Archaeologists and divers with Gran Acuífero Maya (GAM)—a project dedicated to the study and preservation of the Yucatan peninsula—claim to have discovered the world's longest underwater cave just outside of Tulum, Mexico.

Keep reading... Show less
Sponsored
Pexels

3 Reasons to Be Hopeful About Our P​lanet in 2018

By Elizabeth Sturcken

Feeling down about our planet in 2018? Don't!

There are many reasons to be hopeful around environmental action in the new year—and if the following developments don't make you feel better, I've prescribed some action steps at the end that are guaranteed to set you on a healthier, happier path.

Keep reading... Show less
Sponsored

mail-copy

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