By Bob Hinkle, CEO and President, Metrus Energy
While there has been a lot of focus on the ultimate size of the current reconciliation bill (likely to be sub $2 trillion in spending when passed), the lasting environmental value of this bill will be its ability to unlock and accelerate private investment in climate-positive projects that reduce greenhouse gas (GHG) emissions.
According to Bloomberg New Energy Finance, governments and companies will need to invest at least $92 trillion by 2050 in order to limit global temperature rise to the Paris Agreement's target of well below two degrees Celsius compared to pre-industrial levels. On an annual basis, this means global investment in the transition to a low-carbon economy needs to rise between $3.1 trillion and $5.8 trillion per year on average until 2050. All of this serves to underscore that successfully mobilizing private sector investment is a prerequisite to achieving President Biden's stated goal of reducing U.S. GHG emissions 50% below 2005 levels by 2030.
So, what's in the reconciliation bill that can spur private investment and third-party project finance in energy efficiency and renewable energy? The honest answer is not enough – but it could represent a good starting point for further needed action ...
The full version of this article was published and can be read on Utility Dive
