The foundation for a low carbon energy future, involving not only power sources like wind and solar, but also such wide-ranging industries as lighting and transportation, continues to strengthen. Renewables and clean technology are scaling up faster than expected, with advancing technology and significant cost declines drawing investors and accelerating growth. What’s more, substantial economic benefits have become more obvious, perhaps most significantly in the expansion of infrastructure and local jobs.
Goldman Sachs has been instrumental as both an investor and financier in clean energy development. Since setting our initial target in 2012 to deploy $40 billion over 10 years in the clean energy space, we have invested and financed $54 billion and expanded our goal to $150 billion in capital by 2025. This will ensure that we continue to play a key role, leveraging capital markets to aid in the global transition to greater energy security and sustainable economic growth.
The impact of our investment and expertise has been visible and substantial. From 2012 through May 2016, when we reached the initial $40 billion target, we helped 89 companies and projects scale up clean energy and renewables in 29 countries, helping facilitate 31 gigawatts of renewable electricity generation — enough to power 5.5 million U.S. homes. Our investments and financings have also fueled the broader clean tech ecosystem: the development of electric cars, smart grids and manufacturing capacity for solar components and advanced biofuels.
Together, these companies and projects have helped to employ tens of thousands of people and have had a significant positive economic impact on local communities. What’s more, they are helping to avoid millions of metric tons of greenhouse gas emissions per year.
Clean Energy Impact Report
Clean tech and renewables are growing and are resulting in significant benefits, from reduced environmental impact to economic development in markets worldwide. What are the benefits of our own commitment to the clean energy space? We recently issued a report that gauged the impacts of our investments and financings across the globe. After conducting our analysis, here’s what we found.
The Three Drivers of a Low Carbon Future
Technology, capital and policy — all have a leading role to play in increasing energy security, reducing negative impacts and moving the global economy to a more sustainable energy system. Kyung-Ah Park, head of Goldman Sachs’ Environmental Markets Group, sees rapid technology innovation and convergence, catalyzed by capital and policy, driving a broader shift to a low carbon economy.
This article is paid for by Goldman Sachs.