16 Mar Current Outlook: Renewable Energy

Current Outlook

Renewable energy sources are replenished immediately by nature, emit very little carbon over their life cycle and are virtually inexhaustible. According to the International Energy Agency report, almost 90% of new electricity generation in 2020 was based on renewable sources, an increase of 4% compared to 2019. Over the next 30 years, renewable energy sources will grow between 20% and 60% while fossil fuels will decline. Investors are increasingly wary of fossil fuels as the cost of renewable technologies is falling and the push for global carbon pricing is growing. Many investment banks have signaled a move away from both oil and coal. Furthermore, there is growing pressure for all companies to adopt an environmentally responsible stance.

Renewable energy generated more electricity than fossil fuels in Europe in the first half of 2020 and several countries, including the US, have committed to a net zero economy by 2050. Choosing renewable energy is not only an important factor in preserving natural resources, it is also a market differentiator, as it adds value to production processes and the final product.