15. July 2020
thus surpassing the spend on oil and gas extraction that has been in the lead so far. According to a forecast by Goldman Sachs, a quarter of all energy investments are expected to go to the solar, wind, biofuel and other green sources next year. In ten years, their value may amount to USD 16 trillion. For comparison, the astronomic US federal budget deficit ‘only’ amounted to a trillion last year.
To avoid any doubt it should be noted that investment decisions on reducing emissions are not made by any climatic panel or activists, neither are (or will be) the changes driven by governments of the world’s largest economies. The vast majority of funds to be invested in renewable resources come from the market, which Goldman Sachs confirms in its comments: capital expenditures are the key factors - interest rates on loans for fossil fuel projects have increased up to 20% compared to only 3% applied to clean energy.
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