High interest rates threaten the energy transition's cost and pace, particularly for renewables and nascent low-carbon technologies, as reported by Wood Mackenzie.
High interest rates pose risks to the energy transition, particularly for renewables and nascent low-carbon technologies, as they face disproportionate pressure and higher borrowing costs compared to established oil and gas and metals and mining sectors. If high interest rates persist, the cost and pace of the global transition to a net-zero economy will be negatively impacted, according to a report by Wood Mackenzie. The report urges policymakers to bolster carbon markets, maximise subsidy efficiency, and mobilise green finance to offset the burden of high interest rates and support the uptake of low-carbon energy and green technologies.
April 18, 2024
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