Last December’s climate change conference in Paris (COP21) saw governments from around the world approve The Paris Agreement – a global climate deal which sets out a series of principles that will govern greenhouse gas emission reduction efforts.
In attendance was Michael Wilkins, Managing Director of Infrastructure Ratings and Head of Environmental & Climate Research at Standard & Poor’s, who explores the implications of the agreement in this short video published by Global Banking & Finance Review, with the key takeaways as follows:
- The market for renewable energy, clean tech, and ‘green’ finance will take off: pledges from China and India alone could double the world’s wind and solar capacity.
- The need to monetise the reduction of emissions is clear, either in the form of emissions trading schemes or carbon taxes.
- The Paris Agreement will most affect emissions-intensive industries, with the energy sector bearing the brunt (especially oil & gas, commodities, and utilities).
- The global energy transition has begun; while the impact of the Paris Agreement will not be immediate, the transition could happen very fast.