Green Investment Impulse

There has been a great deal of talk of the so called “Green New Deal”. The idea is rather simple, use the present financial situation to promote massive stimulus spending in low carbon infrastructure. Rooselvelt’s intervention in the Depression to stimulate job creation would be repeated with a focus on cleantechnology investments in energy, transportation, waste and water.

To fully understand the impact of the stimulus packages being announced. we need to look at the figures for renewable energy commitments prior to the downturn. According to the Clean Edge report ( a think tank that tracks renewable global energy investments), in 2007, the global investments in fuel cells, and distributed hydrogen, wind, solar, biofuel was approximately $ 77.3 biliion. This figure was predicted to rise to $ 254,5 billion in 2017. This is quite a growth curve. In 2008, the figures jumped to $ 116 billion and the projection for 2018 was $ 325 billion. These figures were all achieved without the government stimulus packages.

Now, if we look at the various stimulus packages, the growth figures become even more dramatic. If you study the chart below, a whopping $ 436, 10 billion of “Green Stimulus” is planned. A large percentage of these commitments is for energy. This is on top of the investment in the pipeline and the natural growth of renewable energy in spite of short term credit crunches. This money will dramatically influence the entire supply chain (project finance, debt financing, private equity, public equity, etc), and also attract even more money as money flows attract more money flows.

Global Figures for Government Stimulus Packages

Region/Country Total $ US  Billion Stimulus (approx.) $US Dollars Billion of Green Stimulus (approx.)
United States 972 112.3
Canada 31.8 2.6
European Union 325.5 54.2
South Korea 38 30.7
Japan 485.9 12.4
China 586 221.3
Other 356.8 2.6
Totals 2796 436.1

source: Investeco Capital Corp.

It might not be called the Green New Deal, but it certainly looks like it to me.

Let the good times, roll

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