High interest rates threaten rollout of green economy: Wood Mackenzie report
A brand new report says if excessive rates of interest persist, it will likely be more durable and extra expensive for society to transition to a net-zero financial system.
The report by international consultancy Wood Mackenzie says excessive rates of interest are placing disproportionate strain on renewable vitality builders in addition to on rising applied sciences like carbon seize and storage and hydrogen.
The new and growing industries would require important capital investments that will probably be dearer due to the excessive value of borrowing.
Wood Mackenzie says by comparability, extra established industries akin to oil and fuel are comparatively unaffected by increased rates of interest.
The report says governments must offset the burden of excessive rates of interest by providing clear, constant and sustained incentives to assist the uptake of low-carbon vitality and inexperienced applied sciences.
Wood Mackenzie has estimated that US$75 trillion in funding will probably be required if the world is to achieve net-zero greenhouse fuel emissions by 2050.
