Something that didn’t exist eight weeks ago.
With U.S. President Joe Biden rejoining 190 other countries in the Paris Climate Agreement, basically all countries on Earth are participating in a unified movement to combat global warming.
Under the agreement the U.S. plans to cut carbon emissions 25% from it’s 2005 levels by 2025 and contribute $3b to the cause. The U.S. is the world’s second biggest polluter after China, which last October announced a net-zero target for 2060. The EU is aiming at climate neutrality by 2050.
Biden’s election, as well as the stated goals of other world powers, have caused green energy companies to see significantly increased investment over the past months, a trend investors see continuing.
Global Sachs head of commodities research, Jeff Currie, spoke on the subject this week and said Goldman believed the green capex is going to be worth around $16t over the next decade. He compared that figure with the $10t China spent on green capex in its boom 2000’s, which in real terms is about the same amount.
By Sid Douglas