Goldman Sachs recently announced that it plans to invest a staggering $150 billion in renewable energy projects and technology like solar and wind turbine farms, energy efficiency upgrades for both commercial and domestic buildings, and the global power grid infrastructure. In fact, the investment bank is almost quadrupling its pledge to finance clean energy infrastructure around the globe.
The global investment bank previously had an aim to invest $40 billion in clean energy technologies by 2012 but will now almost quadruple that financial figure by as early as 2025. Goldman Sachs has long been keen on the clean energy sector and was an early financial supporter of solar and wind turbine farms around the world. This summer, the company signed a pledge, organised by the US Government, to take measures by investing in cleaner technology to reduce global greenhouse gas emissions, and ultimately slow down climate change.
In September, the managing director of Goldman Sachs, Kyung-Ah Park, said at Fortune’s Brainstorm E-conference that the renewable energy sector has “reached a turning point” with more renewable energy systems installed this year than traditional power systems.
Wind Energy Technologies Could Take a Hit
Simultaneously, the market for solar panels and wind energy technologies could take a significant hit in the U.S in 2017. A government initiative that gives residents and businesses a 30% tax credit for installing renewable energy systems is also due to expire by the end of 2016 and will be replaced by a reduced 10% credit rating. While the 30% tax credit has the possibility to be extended by the government, it’s still causing a sense of uncertainty in the national renewable energy market in the U.S.
The bank says that along with its new sustainable energy investment pledge, it will also investigate the opportunity or financing clean energy technology for the developing world, focusing on home solar panels and cleaner cooking stoves, as well as looking to help the development of carbon markets around the world.