Closing the Sustainable Energy Investment Gap

 

There is an increasing gap between the most recent investments in the low-carbon and the things that are truly required to meet the world's demand on energy while still preventing the inherent social impact of Climate Change. But do not fret, as there is an adequate resource and an increased level of interest to close the gap. However, it will require the government's support to formulate policies to boost confidence in the market and balance the business of clean energy in the industry of other sources of energy.

 

Trillions of Investment Equates to Trillions of Benefits

 

Sustainable Energy Investment

Most of the studies concerning the gap in the investment in clean energy highlight the need to create the proper condition, regulation, and policy to attract investments and provide a cleaner type of energy to the greater population by making it more affordable. A well-formulated policy and standard can assist in shaping the landscape of the electricity business, and the corresponding condition can successfully unlock the low-cost clean energy investment.

 

The Trend on Sustainable Energy

 

If the current trend continues, there will be a need to invest $44 trillion in clean energy to meet the global community's current demand. That means that the world has to invest more than $1 trillion per year for 36 years, based on IEA's report. But to prevent the worst effect of global warming, which means that we should restrict the temperature from increasing, we will require an 18% additional investment. Low-carbon energy involves an increase of more than three times and an efficiency of eight times to mitigate the social impact.

 

The primary contributors to the clean energy investment would be the electric utilities, multilateral and national banks, and commercial banks. While this is essential, it is still not adequate to increase the investment in the clean energy business. We need a significant amount of investment to combat the potential impact of global warming.

 

Possible Investors

 Sustainable Energy Investment

The biggest possible investor should include the institutional investors, including the investment and foundation manager, endowment, sovereign fund, insurance company, and pension fund. Private individuals and the government are also starting to pay attention. On the record of last year, around $329 billion was invested in a cleaner form of energy. Governments are also pledging their support and the wealthiest philanthropy in the world to advance innovation in the clean energy business.

 

To meet the global goal of getting access to clean energy will need swift expansion on financing and energy efficiency. While it may sound impossible, this target is definitely achievable.   However, it will require a concentrated effort on different organizations, governments, businesses, and private individuals.


Leaders of Companies That Are Changing the World

 Sustainable Energy Investment

Success does not only pertain to the amount of profit you make or the power you accumulate. Capitalism should be a force that drives the good and should not only be determined by financial success. Capitalism without any sense of purpose and mission cheapens the business industry. Gauging the company's success should include not only what they did but also how they did it.   Leaders around the world are redefining success. They have re-evaluated their organization to promote environmental responsibility, transparency, social impact, and sustainability.

 

Sustainability:  The Greatest Challenge that Visionary Leaders Face

 Sustainable Energy Investment

Today's sustainability prompts the company to take on that giant step to move their business beyond just compliance and efficiency. It is just beyond the eco-friendly feature; it takes their performance to a higher level. Sustainability has a massive impact on a company's bottom line. Investing in a sustainable energy source liberates you from the possible fluctuation of the conventional sources of energy. Unfortunately, the latest research shows that there is currently an increasing gap in the company's statement and their action implemented.

 

Common Barriers

 Sustainable Energy Investment

One of the most significant barriers of the company planning to opt-in a sustainable form of energy would be the uncertainty. The circumstances that affect sustainability add to the intricacy. For instance, the future associated with the issue of environmental regulation is full of uncertainty. The ambiguity on water and energy accessibility and technology even complicates the situation. Aside from that, leaders are compelled to look for long-term goals instead of the customary short-term. This can be a radical change and a tough one to implement.

 

Another known obstacle of going sustainable is that the business lacks comprehension about going sustainable. Some companies are looking at it as mere compliance with the existing regulations. When the proper alignment concerning sustainability is lacking, these visionary leaders will not be able to create realistic goals that will be implemented.

 

How Can They Address These Challenge

 Sustainable Energy Investment

Visionary leaders have a more precise goal compared to other leaders. They have a better capability to inspire others. They should be highly dedicated to the core of sustainability and should be highly willing to reach out to the investors to present their visions. Most of us have that profound interest in participating in an essential goal, but we do not know how to do it. When leaders can create an effective plan for sustainable development, they will capture the interest of those people who need to implement it.

 

Leading your business towards a sustainable form of energy will not be a simple feat. But if you are a leader, you should start to think about the legacy you want to leave. The right path towards a sustainable form of energy is demanding. The leader should take that bold step to create a substantial social impact.

 

 

 

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