– March was the 10th hottest month on record
– Swiss government violated human rights with missed emissions reduction targets
– Global energy transition hindered by lack of knowledge on accessing vast capital for renewable energy projects
March was reported as the 10th consecutive month to be the hottest on record, according to the EU’s Copernicus Climate Change Service. Additionally, the European Court of Human Rights found the Swiss government in violation of human rights for failing to meet past emission reduction targets. Despite numerous global climate change agreements and available renewable energy technologies, there has been little progress in addressing rising temperatures.
The energy transition consists of various projects in wind, solar, waste-to-energy, nuclear, and other technologies globally. These projects are ready to deploy, but lack access to the capital necessary to make an immediate impact on the climate challenge. There is a large reserve of capital known as ‘dry powder’ managed by private markets, including hedge funds and asset managers, that could be allocated to renewable energy projects worldwide.
Project finance has evolved over the decades into a flexible investment structure capable of financing projects ranging from US$100 million to over US$10 billion. This structure focuses on lending against future revenues, such as power purchase agreements, providing risk mitigation for investors. Renewable energy projects are an attractive investment vehicle due to the credibility of their off-takers, ensuring stable returns.
Waste-to-energy (WTE) technology, which is often overlooked, offers a proven and environmentally friendly solution for energy generation. WTE plants convert unrecyclable waste into electricity, reduce landfills, and operate continuously regardless of weather conditions. Governments have the opportunity to build WTE plants without incurring financial liabilities, utilizing proven technologies and financing structures. It is time to leverage available capital and technologies to accelerate the global energy transition effectively.