Finding the most efficient way to pay for the energy transition is not an easy affair—but lawmakers worldwide seem to be increasingly converging on contracts for difference as the mechanism of choice to fund emerging technologies
It is clear that society’s greenhouse gas emissions are costing the Earth but there is still little consensus on what the real price of carbon should be
A tumultuous past 12 months has seen energy security placed firmly at the centre of many discussions around the world. Improving security takes many forms from low-carbon generation to greater energy efficiency in a bid to lower demand. These topics feature in FORESIGHT's top articles of 2022
Entering the audio sphere in 2022, FORESIGHT Climate & Energy's podcasts have given our listeners a chance to hear directly from key personalities in the energy sector and discuss how to achieve a decarbonised economy in the most expedient way. Take a listen to our top episodes from 2022
Carbon prices at sufficiently high levels can push firms to internalise the costs of greenhouse gas emissions while providing a long-term price signal to drive investments needed for decarbonisation. Emission trading systems and carbon taxes feature in a growing number of climate strategies, but even the most well-designed instruments must be accompanied by other policy measures if emissions reductions goals are to be reached
Oil and gas companies are making a ton of cash by selling fossil fuels that are destroying our future. Could the industry instead be spending lavishly to make amends? It turns out things are not so simple
Investors are desperate to put money into sustainable ventures, but entrepreneurs trying to bring novel cleantech concepts to market complain about a lack of funding. Without support, Europe could risk a brain drain in cleantech innovation
Finance for development initiatives in emerging markets is intrinsically tied to climate change—from new roads and energy infrastructure to transportation and new buildings. Yet despite the billions of dollars in overseas development assistance funding, the promised $100 billion of new and additional climate finance by 2020 has failed to materialise
Significant investment power is held within a few state-owned reserves but these conservative sovereign funds are only just beginning to notice the potential returns of clean energy after decades of profiting from fossil fuels
Venture capitalists are putting record amounts of money into climate tech, drawn by the opportunity to make money while fostering the innovation needed for decarbonisation. Digitalisation remains a focus, but investors are increasingly looking to tap into asset-heavy investment opportunities that are crucial to the energy transition
A review of the European Union’s fiscal rules in 2022 could open the door for massive public investments into the energy transition. A political fight over the direction of that amendment will dictate just how ambitious Europe can afford to be with its green policies
Time-stamped certificates would allow customers to know where their power is coming from at any given time and could provide another signal for investors by driving up prices for green energy certificates when supply is short. Regulators are taking steps to ensure that consumers signing up for green tariffs are really helping to progress the energy transition
The model of taking coal plants offline in exchange for renewable energy finance is growing in popularity with a concessional funding version underway in Chile. But experts are concerned the incentives could be unnecessary and may even encourage some plants to stay online
Hydrogen suffers from an abundance of hype, particularly about what it can be used for in the energy transition. Wild claims for the application of hydrogen, with little basis in current science and commercial reality, have worked to obscure the realistic opportunities for putting truly clean hydrogen to work here and now
A finance mechanism that retires coal power stations and replaces them with new renewable energy capacity is gathering steam in the United States. But challenges remain in making this seemingly simple solution mainstream
As the clean energy industry forges ahead into new markets, sometimes with technologies yet to stand the test of time, conditions for obtaining insurance for renewable energy facilities have tightened significantly, particularly for the increasing number of projects built in areas susceptible to natural disasters
Work on mobilising the global bond market to finance the low carbon transition has received an unexpected boost at the hands of the Covid-19 pandemic. Green bond issues are vastly oversubscribed as investors show a clear preference for putting their money into shifting society in a new and better direction
A big part of speeding up the move away from fossil fuels is scaling up innovation and technology. With an appetite for riskier projects, philanthropic foundations could play an important role in raising some much needed cash
The world’s development banks are funnelling ever-greater volumes of finance into clean energy — but the challenge of shifting entire economies away from climate-wrecking activity and towards actions that align investment goals with those of the Paris Agreement requires a more holistic approach
Despite the massive economic downfall as a result of the Covid-19 pandemic and lockdown, there remains strong demand for renewable energy assets, suggesting the sector will not suffer as it did after the 2008 recession
To create demand for sustainable finance, governments should integrate climate criteria into their procurement and in how they draft policies and regulations
The Green Bank Network has committed almost $15 billion of predominantly public capital to mobilise a total of $50 billion towards the low-carbon transition
Expectations are high that the Principles for Sustainable Banking can push banks to change their balance sheets and businesses in line with climate action and other big societal issues
Energy Cities, a European association of local authorities, estimates a city will need between €1 billion and €3 billion to reach net zero emissions by 2050
Banks in Europe claim they are comfortable with lending to renewable energy projects financed on the back of corporate power purchase agreements, but only if the purchaser is a large entity or utility
With the right regulations and better understanding of the advantages of wind and solar over other asset classes, investors can play a key role in speeding up the transition to a clean energy economy
Creating a financial market for energy efficiency in buildings through green mortgages could be the best way to ramp up building renovations and create a virtuous circle that benefits people, planet and profit
An ambitious tax on carbon emissions globally and the reinvestment of carbon revenues in energy efficiency could be game changers for the energy transition even if most countries still remain reluctant to entertain such ideas
Discussions sparked by plans for banks in the EU to hold less capital against green lending have advanced thinking about how monetary authorities and regulators can support green investment, even if the plans themselves have received a mixed reception
Building solar and wind projects without subsidies is seen by many as the solution to the energy transition. But falling costs can create their own problems, especially without the right regulation and continuing financial support for fossil fuels
Once seen as exotic fare, offshore wind investments have become a staple diet for pension funds. New types of investor are moving their chairs up to the table