Green capex lending faces up to the reality of an energy crisis

Banks want to capitalize on the surge in green capex borrowing as corporates rush to decarbonize. Cost inflation has increased the risks involved but not the long-term benefit of carbon reduction.

The structural capital expenditure needs of corporates are undergoing rapid change, as firms rush to exploit investors’ seemingly insatiable appetite for cleaner assets. However, uncertainties around stranded assets and returns on investment are now top of mind for those lenders as the global energy crisis drives up input costs.

The International Energy Agency projects that transition-related investments must reach $4 trillion annually by 2030 to meet net-zero targets under the Network for Greening the Financial System 1.5-degree

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access