Renewables M&A, London, 20 September
Increasing M&A activity is crucial to increasing investment into the renewables sector and reaching the $500+bn annual level that both the IEA (International Energy Agency) and BNEF (Bloomberg New Energy Finance) state is the minimum amount required to avert serious climate change of higher than 2°c.
Key Challenges to Increasing Renewable Energy Institutional Investment
- Scale & Liquidity: Project aggregation and scaling renewables into €0.5-1bn bonds that are at high enough volumes to provide liquidity
- Achieving Investment Grade: Public private partnership to take risk and novelty out of deals
- De-risking Investments: Public sector and insurance can combine to take more risk out
- Fund Green Banks: and stop development banks lending to the fossil fuel sector
- Tax Incentives: Incentive investment through tax breaks to climate and renewables funds
- Economic Political Arguments: Renewables provide jobs, help boost domestic economies. Renewables need to unite and use PR to heavily pressure politicians and win the public argument.