Carbonomics: The Green Engine of Economic Recovery
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.