GOLDMAN SACHS SAYS RENEWABLES TO SURPASS OIL, GAS INVESTMENTS

Green-energy investing will account for 25% of all energy spending in 2021 and, for the first time ever, surpass spending on traditional fuel sources like oil and gas, Goldman Sachs said in a note on Tuesday (Wednesday, June 17, 2020 in Manila.)

Should the US aim to hold global warming within 2 degrees Celsius, the pivot to renewable energy sources will create between $1 trillion and $2 trillion in yearly infrastructure spending, the team of analysts added, or an investment opportunity as big as $16 trillion through 2030, Ben Winck wrote for Business Insider.

While past economic downturns halted efforts to lift clean energy initiatives, the coronavirus recession "will be different," the firm said. Green technologies "are now mature enough to be deployed at scale," and the transition can benefit massively from cheap capital and "an attractive regulatory framework," according to Goldman.

The bank projects green-energy spending to pass that of oil and gas for the first time ever next year and account for roughly 25% of all energy spending. The share stood at just 15% in 2014, but a dive in fossil-fuel investing over the past decade shifted more dollars to clean energy initiatives. If the nation aims to hold global warming within 2 degrees Celsius, the move toward renewable energy would create between $1 trillion and $2 trillion in yearly infrastructure spending, the team led by Michele Della Vigna wrote in a note to clients.