What the World's Current Financial Strain Means for Investment in the Energy Transition

We highly recommend this podcast episode for an update on what the world's current financial strain means for investment in the energy transition. Host Ed Crooks is joined by Nneka Kibuule from Aligned Climate Capital, and Sam Scroggins from Lazard.

The gang starts the discussion by looking at the state of the economy. There is a surge of inflation being felt around the world. In the US, the current rate of consumer inflation is at 8.2%. As a direct result, 30 year mortgage interest rates are at their highest levels in two decades. In Europe, they brace for a rise in energy costs as winter looms near. We explore what this means for investment in low carbon energy and the cost of renewables.

Back in August, the Biden Administration signed into law the Inflation Reduction Act, with tax credits that they hope will help stimulate more investment into wind, solar, storage, hydrogen and nuclear power. The bill is projected to have a huge positive impact over the next ten years, but is it already changing decisions on investments being made now? And what happens when the political landscape changes?

Next, we shift our focus from the discussion of climate mitigation — cutting greenhouse gas emissions — and turn it towards climate adaptation and resilience. Recent events like the category 4 hurricane that destroyed parts of the Southeastern US and parts of Cuba, have highlighted the need for resiliency in local communities. Governments are committing money to strengthening the resilience of communities and infrastructures, but is there more the private sector can do to assist in climate adaptation? Can they generate a return from these hard to monetise spaces?

Listen in as the gang takes a deep dive into where investors are putting their money.

As always, check out our Twitter to let us know your thoughts and any future topics you want us to discuss. We’re @TheEnergyGang.

This episode of the Energy Gang is brought to you by Hitachi Energy, a global technology leader advancing a sustainable energy future for all.

Learn more by listening to the Power Pulse podcast, where the Hitachi Energy team discusses the latest in the ongoing transformation of the world’s energy systems. The Power Pulse podcast is available now on Spotify, Apple Podcasts or any other podcast app.

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