The shift to renewables is coming and it’s coming fast. Big industry and financial institutions are finally getting on board with a greener future. This week, Goldman Sachs analysts released a report stating that the transition to renewable power from traditional fuels will create a $16 trillion investment opportunity through 2030.
They project that green energy spending will surpass oil and gas for the first time this coming year and account for roughly 25 percent of all energy spending over the next 12 months. As of 2015, the share of spending was 15 percent, but the dive in fossil fuel investment over the past decade has created a significant shift in these statistics.
Earlier this month we shared how England has gone over two months without coal-sourced power. This financial projection is just another indication that the global move to renewables has arrived.
Economic downturns have historically slowed efforts to boost clean energy investment, but Goldman Sachs is seeing the coronavirus downturn contradicting that trend and accelerating the nationwide pivot to green energy.
The potential of new technology combined with the falling cost of capital and an attractive regulatory framework is making investors hungry for a piece of the renewable energy pie.
The transition is not without risks, but getting in on the ground floor of the renewable energy revolution holds enormous potential for investors and the future of green industries.