Full Title: Carbonomics: The green engine of economic recovery
Author(s): Michele Della Vigna, Zoe Stavrinou, & Alberto Gandolf
Publisher(s): The Goldman Sachs Group, Inc.
Publication Date: June 16, 2020
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Description (excerpt):
Clean tech has a major role to play in the upcoming economic recovery. Leveraging our Carbonomics cost curve, we estimate that clean tech has the potential to drive US$1-2 tn pa of green infrastructure investments and create 15-20 mn jobs worldwide, through public-private collaboration (e.g., “The Green Deal”). Renewable power will become the largest area of spending in the energy industry in 2021, on our estimates, surpassing upstream oil & gas for the first time in history, driven by bifurcating cost of capital (up to 20% for long-term oil projects, down to 3-5% for renewables). Rising capital markets engagement in climate change is driving this seismic shift in capital allocation, charging an implied carbon price of US$40-80/ton for new hydrocarbon developments, on our estimates