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.
Renewable energy, clean tech & green finance poised for $16.5 trillion post-Paris take-off https://t.co/WFyrFXd5KO https://t.co/uvtzpiy5he— GCCA (@GCCA)1453482058.0
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.
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1. Wangari Maathai
<p>In 2004, Professor Maathai made history as the <a href="https://www.nobelpeaceprize.org/Prize-winners/Prizewinner-documentation/Wangari-Maathai" target="_blank" rel="noopener noreferrer">first African woman to be awarded the Nobel Peace Prize</a> for her dedication to sustainable development, democracy and peace. She started the <a href="http://www.greenbeltmovement.org/" target="_blank" rel="noopener noreferrer">Green Belt Movement</a>, a community-based tree planting initiative that aims to reduce poverty and encourage conservation, in 1977. More than 51 million trees have been planted helping build climate resilience and empower communities, especially women and girls. Her environmental work is celebrated every year on <a href="http://www.greenbeltmovement.org/node/955" target="_blank" rel="noopener noreferrer">Wangari Maathai Day on 3 March</a>.</p>2. Robert Bullard
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Pollution has a race problem. Elizabethwarren.com
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<p>Helping the clean-up operation after an oil spill in San Francisco Bay in January 1971 inspired Francis to <a href="https://planetwalk.org/about-john/" target="_blank" rel="noopener noreferrer">stop taking motorized transport</a>. Instead, for 22 years, he walked everywhere. He also took a vow of silence that lasted 17 years, so he could listen to others. He has walked the width of the U.S. and sailed and walked through South America, earning the nickname "Planetwalker," and raising awareness of how interconnected people are with the environment.</p><span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="09b968e0e9964e31406954dcea45981d"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/vgQjL23_FoU?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
4. Dr. Warren Washington
<p>A meteorology and climate pioneer, Dr. Washington was one of the first people to develop atmospheric computer models in the 1960s, which have helped scientists understand climate change. These models now also incorporate the oceans and sea ice, surface water and vegetation. In 2007, the <a href="https://www.cgd.ucar.edu/pcm/" target="_blank" rel="noopener noreferrer">Parallel Climate Model (PCM)</a> and <a href="https://www.cesm.ucar.edu/" target="_blank" rel="noopener noreferrer">Community Earth System Model (CESM)</a>, earned Dr. Washington and his colleagues the <a href="https://www.nobelprize.org/prizes/peace/2007/summary/" target="_blank" rel="noopener noreferrer">Nobel Peace Prize</a>, as part of the <a href="https://www.ipcc.ch/" target="_blank" rel="noopener noreferrer">Intergovernmental Panel on Climate Change</a>.</p><span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="09fbf6dc37f275f438a0d53ec0fe1874"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/bvJ4jTy2mTk?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
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<p>Huge trees and hikes to pick berries during her childhood in upstate New York inspired Ezeilo to become an environmentalist and set up the <a href="https://gyfoundation.org/staff/Angelou-Ezeilo" target="_blank" rel="noopener noreferrer">Greening Youth Foundation</a>, to educate future generations about the importance of preservation. Through its schools program and Youth Conservation Corps, the social enterprise provides access to nature to disadvantaged children and young people in the U.S. and West Africa. In 2019, Ezeilo published her book <em>Engage, Connect, Protect: Empowering Diverse Youth as Environmental Leaders</em>, co-written by her Pulitzer Prize-winning brother Nick Chiles.</p><span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="ce4547d4e5c0b9ad2927f19fd75bf4ab"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/YojKMfUvJMs?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
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