What’s the energy transition going to cost?

Estimates for the cost of decarbonising could be inaccurate. What does that mean for investment and policy-making? About $1.2 trillion is invested annually in climate technology and infrastructure worldwide, with significant portions allocated to China due to its accelerated decarbonization goals. However, experts argue that about $9 trillion could be needed annually to effectively counter climate change, indicating a substantial gap in current funding​. Debate continues over the economic feasibility of such costs, to the detriment of progress, but what if the cost was actually far less? RMI, the research and clean energy advocacy group, says that this may indeed be the case. These forecasts could be overinflated by trillions of dollars. If that’s true, what will it mean for investors, markets and policy?  We are joined by Dan Goldman, managing partner at Clean Energy Ventures, a VC that funds startups developing early stage breakthrough technologies. He says the there’s a significant investment shortfall – regardless of the total cost of decarbonising – currently to stabilise global temperatures. He discusses a downturn in venture capital investments in climate tech, particularly affecting early-stage companies and innovation in new technologies. Challenges remain in scaling up clean energy technologies due to a combination of high interest rates, inflationary pressures, and supply chain disruptions, which increase costs and complicate project implementations. There's a specific shortfall in investment for infrastructure necessary for large-scale renewable energy implementations, like wind and solar, which are essential for a robust energy transition. We discuss how this could be addressed, and analyse the current economic environment, characterized by high costs and uncertain returns.   Is it these barriers that are hindering significant capital flow into this sector, or the forecasted cost for decarbonising global energy systems? How can global financial strategies be adjusted to accelerate the necessary investments in clean energy and technology? Find out on the show. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Om Podcasten

Clean tech, green finance and energy innovation are the three lanes on the road to a successful global energy transition. At the intersection of these lanes is a place where ideas on finance, technology and policy are shared and debated. That intersection is Interchange Recharged.  Sylvia Leyva Martinez, principal analyst at Wood Mackenzie, invites visionaries, entrepreneurs, policy-makers and energy analysts to explore the newest developments in renewable technology, explain the ideas on global energy policy that could accelerate the energy transition, and identify new funding and financial models that could solve the biggest challenges we face on the way to net zero.  Sylvia and her guests bring you data and forecasts on clean technology, climate science, and offer predictions on the build out of utility-scale projects and the future of green finance. What impacts do the annual UN Conference of the Parties have on decarbonisation goals and climate change? What will COP30 bring? What’s happening in global EV adoption and development? What’s the forecast for solar energy, one of the major success stories of renewable energy in the last ten years? What does the data tell us about the future of hydrogen, of nuclear, or of low-carbon power?  These are examples of the insights and detailed analyses you can expect bi-weekly on Tuesdays at 7am ET.  If you like The Energy Transition Show, Catalyst with Shayle Kann, The Big Switch from Columbia University, Open Circuit with Stephen Lacey or The Green Blueprint, you’ll enjoy Interchange Recharged.  Want to get involved with the show? Reach out to podcasts@woodmac.com to: Bring Sylvia and Interchange Recharged to your event Be a guest on the show  Sponsor an episode Ask a question to Sylvia or one of our guests  Check out another leading clean tech global podcast by Wood Mackenzie, Energy Gang, at woodmac.com/podcasts/the-energy-gang Wood Mackenzie is the leading global data and analytics solutions provider for renewables, energy and natural resources. Learn more about Wood Mackenzie on the official website: https://www.woodmac.com/