Investor interest in renewables tips balance
The current level of investment in renewables indicates that the fossil fuel obsession could be on the wane.
The current level of investment in renewables indicates that the fossil fuel obsession could be on the wane.
A recent study that appeared in the Nature Energy journal seems to suggest that there has been a worldwide momentum shift from fossil fuels to renewable energy, with investment levels as the key indicator.
Although perhaps too soon for outright optimism, it is now the case, somewhat surprisingly, that global state investment in to renewables now outweighs the inflows in to fossil fuels. It is, however, not conclusive evidence that green policy shifts exist across the board.
Having said that, this change does come off the back of the recent declaration in Paris, at the UN Climate Change Summit, to target the 1.5°mark when it comes to average annual warming, with the reduction of fossil fuel combustion as a key strategy. Indeed, some commentators do believe that there has been a tangible change in philosophy within key policymaking offices, with renewables now the order of the day.
One key driver of this change in the investment balance has been the adoption of solar and wind energy across a number of countries. These include Denmark, Spain, Portugal and Germany, as well as the US states of Hawaii and California.
The second key catalyst is a widening grasp of the importance of diversity when it comes to energy sources. This results form a momentum that began 40 years ago and is the result of insecurity of fossil fuel provision due to geopolitical issues in a number of oil-producing states.
There has also been a reduction in the costs of renewable energies, as a knock-on effect of the increased investment levels. This means that not only does the adoption of greener energy play a role in global environmental improvements, but too it can enhance the security of energy systems at a reasonable cost.