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Clean Energy – The World Goes Green

Posted: Wednesday, November 25th, 2020

Estimated Reading Time: 2 minutes

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The world turns to clean energy, and there is no way back to fossils. More visible in the developed world, the transition to clean energy gains traction in the developing and emerging markets too.

Clean energy stimulus packages account for over $100 billion spread between different sectors. Naturally, the energy efficiency sector leads the pack, with an announced stimulus of over $30 billion. The electric vehicles market, green hydrogen, and renewable electricity follow with over $10 billion in announced stimulus packages announced.

Clean Energy

However, what is more important is that the train left the station. As such, it is too late for the world to switch back to fossils, for the simple reason that it cannot afford to do that.

Furthermore, the more money is poured into such practices, the more difficult it would be to wind them down. After all, the 2020 pandemic lockdowns in March brought a new image of how the world looks with reduced CO2 emissions and pollution.

Public Institutions and Private Corporations Shift to Clean Energy

The shift to clean energy is not coming only from governmental decisions. In this regard, the European Commission leads the way with its Green Deal. Also, the new administration in the United States plans to put back the country on the Paris Climate Change accord and invest in green projects too.

Public institutions push to clean energy too. For instance, the European Central Bank vows to reduce its carbon print to zero. This is just an example, as more and more private corporations shift to such a stance. In fact, the ESG (Environmental, Social, and Governance) concerns and politics are in the driving seat of corporations’ decisions.

It all started with the consumer favoring green projects. A consumer boycott of a company’s products or services for the simple reason that they are not green is enough to bring tremendous damage to any company, no matter the size.

The Rise of Green Bonds

Green bonds are the next step to clean energy funding needs. Both public and private institutions started issuing such bonds. Effectively, it means that they use the proceeds in green investments. Because corporations need to increase their green print and decrease the carbon one, there is a strong demand for green bonds on the horizon.

In other words, even a corporation with no active green projects or that cannot do much more due to its activities, can invest in green bonds and reduce its carbon print. There is so much more to the subject that it will be covered more in the future.

For now, clean energy projects are on the rise throughout the world, especially in the developed parts of it. From solar PV projects to renewable heat and biofuels for transportation, clean energy is changing the world for the better.

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