Who Will Invest in Clean Energy? Big Money Will

first_imgWho Will Invest in Clean Energy? Big Money Will FacebookTwitterLinkedInEmailPrint分享Bloomberg New Energy Finance:People who invest in the world’s energy systems often want to know how many trillions of dollars will be needed to finance renewable energy and natural gas. One way to find the answer is to look at what those who have already invested trillions of dollars want to happen as the world transitions to a lower-carbon power system and electrifies transportation.A look at the numbers shows that the first thing they want is scale. The 10 largest institutional asset managers each manage more than $1 trillion; the largest, BlackRock Inc., manages nearly $6 trillion. Trillions of dollars of investor supply naturally need trillions of dollars of asset and company demand.Fortunately for energy, it has such a demand. Bloomberg New Energy Finance estimates that zero-carbon power generation will attract almost $9 trillion in investment between now and 2040.Increasingly, the suppliers of that institutionally managed money want to know how their portfolios will affect climate change. Earlier this year, David Fickling took a smart look at the largest asset managers and found that most of the 20 biggest ones back shareholder resolutions on climate and sustainability. Such resolutions are becoming far more common, too: This year, investors have filed 189 climate and sustainability resolutions with U.S.-listed companies — as many as in the previous five years combined, according to Ceres’ climate and sustainability resolutions database.And then there’s yield. Investors are still piling into U.S. energy high-yield debt, which mostly funds oil and gas exploration and production. As Liam Denning noted in August, even this risky part of the energy bond market still yields in the range of only 6 to 7 percent.A decade ago, the yield from U.S. energy fixed income would have been comfortably investment-grade, according to the International Monetary Fund’s October Global Financial Stability Report. In 2007, all but a very small proportion of corporate debt yielded more than 4 percent, and not a dime of securitized or collateralized debt yielded below 4 percent. Ten years ago, “only” $3.4 trillion of investment-grade fixed income yielded below 4 percent.Things look rather different now. According to the IMF, there is now just under $40 trillion of investment-grade fixed income yielding below 4 percent, including more than $5 trillion with a negative yield.This yield distribution, then, is what anything needs to beat to be considered “high yield.” 2007’s investment-grade yield is today’s risky yield; today’s low-risk yield is barely any yield at all, and could even be a negative yield.There’s plenty of money out there to create renewable technologies, and its institutional investors want more than lower-carbon investment strategies. They also are seeking to beat very low investment-grade yields.In 2007, when renewable technologies were expensive compared with conventional energy, and when shale gas just a glimmer in the eye of the U.S. oil patch, there may have been a funding gap. Today, we’re dealing with something more addressable: a simple matter of allocation. Trillions of dollars are needed; trillions of dollars exist. It’s just a matter of aligning supply and demand.More: Who Will Fund Clean Energy?last_img read more

BNP allowed holding rally on 23 conditions

first_imgThe Bangladesh Nationalist Party (BNP) got permission from the Dhaka Metropolitan Police (DMP) on 23 conditions to hold a rally in the capital on Friday demanding the release of its chairperson Khaleda Zia from jail and her better treatment.The rally will have to be held in front of BNP’s Naya Paltan central office in Dhaka between 3:00pm and 5:00pm, police said.DMP’s Motijheel division deputy commissioner Shibli Noman told Prothom Alo that they have given permission to the BNP to hold the rally on conditions.As per the conditions, the BNP has to limit the programme in front of the party office only and they cannot hold the rally blocking roads.The order also said the party has to set up Close Circuit Television (CCTV) cameras and archways, and deploy a good number of volunteers with ID cards to maintain discipline and ensure security.The condition also said this permission is not given for using space. The party has been asked to seek permission from the authorities concerned for using space, it added.On Thursday, BNP senior joint secretary general Ruhul Kabir Rizvi said they have got a verbal permission from police to hold the rally in front of the party’s Naya Paltan central office at 3:00pm on Friday.Responding to a question about security of the rally, Shibli Noman said they have taken security measures as they usually take for rallies of political parties.They [BNP] would end the rally peacefully, police hopes.On 15 July, BNP secretary general Mirza Fakhrul Islam Alamgir announced that their party will stage demonstrations across the country, including the capital, on Friday demanding the release of its chairperson Khaleda Zia from jail and her better treatment.On 8 February 2018, a trial court sentenced Khaleda Zia to five years in jail in Zia Orphanage Trust graft case and sent her to jail. Since then, the former prime minister has been kept in the abandoned central jail at Nazimuddin Road in Old Dhaka.last_img read more