The African heat wave can push the development of renewables. To hypothesize a favorable scenario for the increase in the production of energy from renewable sources is UBS which, in a report, estimates one recovery of investments in renewable energy due to the increase in anomalous but increasingly repetitive heat waves.
No single meteorological event can be directly linked to global climate change, Ubs analysts responsibly make it clear immediately. However,the heat wave may contribute to the political pressure on governments and companies to reduce greenhouse gas emissions. The UK's Met Office has said that global warming makes heatwaves 30 times more likely than in 1750. And European meteorological centers are increasingly seeing high peaks and elevations in available statistics covering the last 250 years of weather history. of temperatures.
“Investments in renewable energy have so far been modest. But we believe clean energy holds potential for long-term investors. Green bonds, meanwhile, are becoming an established asset class, offering comparable yields to conventional bonds while enabling investors to align portfolios with their ethical values,” comments Mark Haefele, Chief Investment Officer, UBS Global Wealth Management.
Ubi recalls recent study “Bloomberg New Energy Finance“Renewable energy investment has been relatively modest this year, with a global decline of 14% in the first half in US dollar terms. However, we believe the long-term outlook for renewable energy investments – both stocks and green bonds – remains positive.
Ubi bases its predictions on a few considerations. The commercial appeal of renewable energies is on the rise. TBetween 2009 and 2017, solar panel prices dropped by 76% and wind turbines by 34%, making them competitive and cheaper than fossil fuels in most markets.
Falling costs also explain why renewable energy installed capacity growth is picking up, even as the dollar value of green energy investments are declining. Meanwhile, "we expect renewables investment in China could recover following a successful renewable energy auction this month."
