S&P Global Ratings has published its latest edition of IFR Outlook – reviewing the developments from the global infrastructure sectors in the second quarter.
The edition’s lead feature analyses the consequences of President Trump’s decision to withdraw the U.S. from the Paris Agreement on climate change. S&P’s Director, U.S. Energy Infrastructure, Michael Ferguson, argues that the secondary motive of revitalising the country’s ailing industry may not be best served by the President’s actions. In fact, the withdrawal is likely to be largely inconsequential as low gas prices continue to direct the market’s movements.
Luisina Berberian writes on the latest trends in offshore wind technology. While Berberian acknowledges that Europe remains the industry’s frontrunners, following closely on its tails are China, whose offshore capacity is set to quadruple before 2020. The U.S., meanwhile, is also showing signs of accelerating development of offshore farms. With a total potential capacity of 4,200 GW of energy available off its coastlines, the U.S.’ nascent industry may be one to watch in the future.
Next, Michael Wilkins, S&P’s Head of Environmental and Climate Risk Research, introduces S&P Global Ratings’ Green Evaluation Tool. Given that over US$800 billion needs to be invested in renewables energy every year until 2020 to meet global climate and sustainability development objectives, granting investors greater transparency over the environmental impact of potential projects is becoming increasingly essential. The Green Evaluation Tool, which launched earlier this year, will satisfy investors’ needs for insights into a financing’s green qualities.
S&P’s analysts also delve into the most pressing issues in the infrastructure sector from across the world, including: the latest renewables, airport redevelopment and toll road projects emerging in Latin America; the growing interest in bundling assets in North America; and a takeover deal in Europe that could create the world’s largest infrastructure group.
For all the ratings news and updates making the headlines and more, read the edition online.
Moorgate compiles and edits IFR Outlook.