There are three main drivers behind the continuing growth of solar today: the economics of energy, the energy crisis driven by the war in Ukraine, and a growing global focus on green and net zero initiatives. What matters is that these three drivers change the dynamics of investment – there is a growing body of capital looking to align with low-carbon, net-zero initiatives. Yet as the debate rages about operational versus overall sustainability, what is the future of solar for ESG finance?
According to the IEA, domestically produced solar PV modules, including polysilicon, ingots, wafers, cells, and module assembly, need to operate for just three to five months before they’ve generated enough clean power to cover their manufacturing-related emissions.
This August saw ratings giant Moody’s predict that the issue of green, social, sustainability, and sustainability linked (GSSS) bonds will reach $1 trillion in 2022. Bloomberg Intelligence has predicted that global ESG assets are on track to exceed $53 trillion by 2025, representing more than a third of all assets under management. When a third of the world’s investments are ESG, or Environmental, Social, and Governance, that’s no longer a trend but a transformation.