During a time of uncertainty, green economists have been working to identify investment opportunities that will have quick, positive economic effects.
Understanding the challenges and opportunities of investment is so important now more than ever. As we rebuild economics, countries and communities, investment in green deals will create more jobs, deliver higher short-term returns per dollar spend and lead to increased long-term cost savings.
So far, 2020 has been a great year for sustainability, with a drop in emissions of at least 5% expected. However, this is not due to increased investment, activism, or effective ongoing policy, but instead the exceptional, covid-19 induced economic shutdown.
But when the world returns to normal over the next few years, emissions will have to keep dropping at the same rate to reach the 2050 net-zero target. This is a wake-up call to many, making renewable energy a hot investment prospect amid the current low oil prices. Investing in clean energy will help meet strict climate targets and for the first-time renewable energy is not seen as an expensive luxury, but the only viable long-term energy investment.
The world remains ‘at the front end of an historic trend in investor preferences toward sustainability’. Money will flow into the sector with increased backing of projects in clean energy, digital infrastructure, and energy efficient building retrofits.
Investing in clean energy and climate-friendly infrastructure would create jobs, stimulate economic development, and prioritise a new sustainable way forward. We must rebuild more resilient communities that run on renewable, accessible energy!
“The arc of technology is arguing for less and less fossil fuels, the high-tech today is in batteries and carbon capture and hydrogen power,” said Julie Gorte, senior vice president of Sustainable Investing for Pax World Funds and Impax Asset Management.
Here at Hyperion, we are continuously supporting the growth of breakthrough clean technology companies across the US. If you would like to find out more about the work we are doing within these industries, get in touch now!
“In the past, oil price declines hurt renewables, but today renewables are the cost-effective choice in two-thirds of the world.”