Do green energy bonds hold the future of alternative energy in their hands? It seems they do. There are a lot of experts, scientists and analysts who are of a singular belief that alternative or green energy sources are our only hope to save the planet and we seem to agree with them. These sources are set to play a larger and more important role now more than ever. We are looking towards them for the development of electricity around the world.
Wind energy bonds and/ or renewable energy bonds present a very lucrative opportunity for a lot of investors across the globe and we can’t seem to find anything to negate that claim. There are several globally dominant companies that are actively paving path for investment in wind energy and renewable energy bonds of all kinds.
Studies also suggest that solar and wind energy sources can now be coupled with grids that are at parity with traditional electricity generating methods. This will let us use these resources for the same price or even lesser in future as these technologies continue to evolve.
What Are The Benefits Of Investing In Green Bonds?
If you are looking for a tax-exempt income, green bonds let you do just that. Many investors around the world are readily picking green energy bonds to invest in so that they get not just a sense of personal satisfaction but also peace of mind knowing that their money is being invested in a cause that would eventually benefit humanity as a whole.
There is a rising awareness about wind energy bonds or renewable energy investment avenues that is attracting investment from a new subset of investors, which is the younger lot. We are thus seeing a higher demand for green bonds these days and this directly equates to lower borrowing costs for the issuer. Lower borrowing costs directly imply reduced expenditures, which is again a major benefit that gets passed on to the investor in the form of dividends or better ROI.
A Little Insight On The Major Emerging Global Markets For Renewable Energy Investment
According to studies the countries that come on top of this list are China, Europe and the U.S. These are the top 3 markets for renewable energy source investment. According to REN21 estimates, these countries alone accounted for 74% of global renewable energy investment in the year 2017.
- China continues to lead the pack with a chunky 45% of global investment in the same year which was up by 10% as compared to what they recorded in 2016. Transportation electrification is a major area where the Chinese have a lead on any other country. Despite the fact that electric vehicles account for just 1% of global car sales right now, China continues to dominate the market as the world’s largest buyer of these cars.
- In the same year, Europe saw 15 % of global renewable energy investments according to REN21. This region is an overall major source of global investment in this sector. The European Investment Bank earmarked a whopping $5.1 billion for energy sector initiatives in the same year (2017).
- When we compare this to the data relating to the US, it amounts to 14% which is roughly $40.5 billion of the global total. Generally the investment trend seems to be in an upward direction as we saw 8.5 gigawatts of utility PV projects in the first half of 2018 being announced.
Bottom Line
Green bond proceeds are used to fund environment-friendly projects which help preserve mother earth. Several green bond projects aim to ensure cleaner water, safer sources of renewable energy, enhanced energy efficiency, efficient and quicker river and habitat restoration, land acquisition and mitigation of climate change to name a few. You can be a part of this change too.
