Category: Finance

Renewable energy as a catalyst for investment and growth in Vietnam

Several high-profile investors have entered Vietnam’s C&I market. The French utility group EDF and its local partner, investment fund VinaCapital, have committed USD100 million over the next three years for a pipeline of 200 MWp of C&I rooftop solar power systems. South Korean conglomerate SK Group has pledged USD200 million and a 250 MWp installation target in the next few years, with local partner Nami Energy.

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Wind and Solar Corporate PPA Prices Rise Up To 16.7% Across Europe

The survey looks at the range of offer prices for solar and onshore wind PPAs across 10 European markets. Solar PPAs are generally more expensive than wind by up to 10 euros/MWh in each respective market, although the average gap has narrowed from 6.7 to 4.5 euros since 2H 2020. This is because onshore wind prices rose slightly more on average (9.4%) than solar (5.7%) over that time.

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The new norm: ESG disclosures and science-based targets

Increased public financing is required to de-risk private investment and support the development of new infrastructure. Reforms to improve transparency of climate-related data will help underpin efforts to incorporate climate risks into financial regulatory frameworks and develop transition risk modelling among financial institutions, helping to align capital allocation decisions.

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How can finance help China’s heavy industries decarbonise?

Cutting emissions from high-carbon industries, such as steel and cement making, is crucial to China’s efforts to meet its dual carbon targets, of peaking by 2030 and neutrality before 2060. But low-carbon restructuring, and adopting and commercialising greener technologies, will be tough to do at scale. A recent report from the CBI found China needs to spend between 2.2 trillion and 12.5 trillion yuan change.

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Green infrastructure investment opportunities in Indonesia

Indonesia requires USD 154 billion of investments to achieve the renewable target of 23% by 2025, and public funding is expected to only cover 51% of this requirement. The pandemic may cause further setbacks, as portions of the public budget have been diverted. In this context, the role of the private sector becomes increasingly critical for Indonesia to achieve its 2025 target and enable a sustainable recovery.

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Green bonds market in India

Today, there are several investors that have dedicated funds to invest in green bonds, and the Indian government in­ten­ds to heighten the participation of inter­na­tional investors in the domestic bond market. It is expected that the government’s green bonds will set a precedent and are likely to open up the local market further. The issuance will be part of the government’s overall market borrowing of Rs 14.95 trillion in 2022-23, tho­ugh the issue size for the green bonds has not been specified yet.

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Energy Transition’s Big Dollars and Big Themes

Energy transition investment follows familiar patterns in global capital markets. Last year, energy transition and climate tech (renewable energy, energy storage, electrified vehicles and heating, hydrogen, nuclear power, sustainable materials and the carbon capture) attracted more than $900 billion. Energy transition investment alone reached $755 billion, up by a quarter over 2020 investment, double what was invested in 2015, and a more than 20-fold increase since 2004.

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U.S. Renewable Energy M&A: Review of 2021 and Outlook for 2022

In a year in which both global and U.S. M&A activity in aggregate reached record levels, renewable energy M&A contributed to the mix in terms of high deal volume and landmark transactions. The market for renewable energy assets, portfolios and platforms remained hot, despite industry headwinds that included disruptions to supply chains, trade developments that negatively impacted the sector and policy uncertainty.

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Green finance trends and opportunities in Thailand

Thailand is well-positioned to mobilize capital from the green bond markets to support green infrastructure investment. Within ASEAN, Thailand has a mature bond market. The Thai bond market has grown rapidly in the aftermath of the 1997 economic downturn and is the second largest among ASEAN bond markets (next to Malaysia), with an annual average growth of 10%.

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Finance for climate action is not on a par with the warming world

Overall, the majority of climate finance (61%, USD 384 billion) was raised as debt, of which 12% was low-cost or concessional. High shares of domestic flows dominated in Western Europe, US & Canada, and East Asia & Pacific, accounting for 76% of the global flows while, inversely, a higher share of international finance was observed in the developing regions of Sub-Saharan Africa and South Asia.

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Implementing the Clean Energy Investments in US Bipartisan Infrastructure Law

The Build Back Better Act contains the heart of President Biden’s domestic agenda, including over $500 billion in climate and clean energy provisions that are necessary for the U.S. to meet its climate goals. While the fight for the Build Back Better Act is not over, we also must ensure that existing federal funds are put to the best decarbonization uses possible. In November, President Biden signed the $1.2 trillion Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law.

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Capital Markets Can Power Southeast Asia’s Sustainable Pandemic Recovery

Asia and the Pacific as a whole was already behind schedule in terms of meeting the goals by 2030, and the pandemic has set the region back further. One way in which governments can compensate for this is to mobilize private capital for sustainable investments. In Southeast Asia, countries have already made significant progress in this area. In September 2021, the cumulative value of ASEAN-labeled green, social, and sustainability bonds issued in Southeast Asia reached $16.4 billion.

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China’s Green Finance Agenda

China has pledged to be carbon neutral by 2060. It’s a huge ambition and will require a vast amount of domestic and international investment. China’s statement that it will be carbon neutral by 2060 will require an estimated US$21 trillion in investment, according to research from Tsinghua University in Beijing. The Chinese green bond market is the second largest market outside of the US in terms of issue size and capacity.

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How finance is driving Australia’s green transition

Finance is playing a significant role in encouraging Australia’s push towards net zero, with companies that commit to climate targets finding it easier to attract investment and raise capital, according to Jo Spillane, Global Head of Private Capital Markets at Macquarie Capital. Spillane says that one of the main vehicles through which this is happening is Australia’s pension funds, or superannuation (super) funds as they are known locally.

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Renewable Energy Financing Mechanism in European Union

To support renewable energy projects and incentivise the uptake of renewable energy sources (RES) across Europe, the EU has established a novel RES financing mechanism (REFM), under which Member States will make voluntary financial contributions to support new renewable energy projects in EU countries interested in hosting such projects, through competitive tenders for investment or operating aid.

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Green Capex in Infrastructure

Increasingly we believe investors and broader stakeholders will look more closely at how much Green Capex is being funded and how funding, cost structure and innovation will impact execution towards Net Zero, Clean Water and broader Infrastructure goals. We expect Green Capex will primarily be funded by the private and public sectors, though for some products like residential solar, appliances and electric vehicles, individuals will play an important role.

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Greening India’s Homes and Vehicles with Low-Cost Finance

Pursuing low-carbon development is central to India’s Paris Agreement climate goals. In this pursuit, net-zero energy buildings (NZEBs) and electric vehicles (EVs) are the two high-leverage areas. The ability to deliver vast emissions reductions across rural and urban settings has brought NZEBs and EVs to the center of the climate change mitigation agenda. In the Indian context, vehicles and homes also have the distinction of being the two most important purchases consumers make.

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Green Bond Market in China

China has, for the last 6 years, been one of the world’s largest green bond markets and yet, the market in 2020 was bumpy. Total Chinese green bond issuance in the domestic and overseas market reached USD44bn (RMB289.5bn), representing a 21% decrease from the USD55.8bn (RMB386bn) achieved in 2019.

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Greening Southeast Asia’s Economy

A new narrative has emerged around climate action and global actors are responding. SEA is gaining importance as a critical piece of the global Net Zero solution. There is renewed recognition of the untapped potential of SEA’s natural capital as carbon sinks, and MNCs who have committed to Net Zero recognize they cannot deliver their climate goals without supporting change in SEA across their local supply chains. Put simply, the world cannot achieve Net Zero without SEA coming along on the journey.

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Funding Climate Technology to Achieve Net Zero

As the window to prevent irreversible damage to the planet from climate change becomes smaller and technological advances accelerate, they are finally aligning. Innovation is key to delivering net zero carbon emissions. The right investment conditions are now present to enable ground-breaking “climate tech” ideas to come to fruition.

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