Mitigating climate change
Private sector investments to mitigate climate change
Global energy requirements will increase by more than 30% by 2040, the additional demand being driven by non-OECD countries. responsAbility is supporting this growth market with targeted investment products.
According to current forecasts, global energy requirements are set to increase by more than 30% by 2040, with the additional demand being driven 100% by non-Organisation for Economic Co-operation and Development (OECD) countries.
Investments in renewable energy technologies
Energy production and energy consumption account for two-thirds of global greenhouse gas emissions.
The International Energy Agency (IEA) estimates that to achieve the long-term decarbonization of the energy sector, investments in renewable energy technologies would need to increase from USD 270 billion in 2014 to USD 400 billion in 2030.
Reducing greenhouse gas emissions
Measures to ensure the more efficient use of energy and the increased production of renewable energy in emerging economies and developing counties are therefore key factors in reducing greenhouse gas emissions.
“Investments in renewable energy technologies need to increase from USD 270 billion in 2014 to USD 400 billion in 2030.”
Overcoming the investment deficit
The energy supply gap cannot be closed – and the continued strong increase in the demand for energy cannot be satisfied – without substantial investments in the sector.
As limited funding is available and the public sector has other priorities, the private sector can assume a key role in efforts to overcome the investment deficit across many areas.
“Continued strong increase in the demand for energy cannot be satisfied without substantial investments in the sector.”
The way in which this can be achieved is demonstrated by responsAbility.
responsAbility targeted investment products
For example, responsAbility manages a climate fund that invests directly (or through banks) in energy efficiency and the production of renewable energies in emerging economies and developing countries.
Specific examples include the financing of:
- Solar energy systems for industrial parks in Nicaragua
- Energy efficiency projects for India’s agricultural sector
- Companies in Africa and India that offer home solar systems for people living in isolated areas
- A company that finances, constructs and operates small-scale hydropower and biomass power plants in East Africa
The source for all information mentioned herein is responsAbility Investments AG unless not mentioned otherwise.