GTM - Goldman sees clean energy, clean water, and energy access as a massive near-term opportunity.
Goldman Sachs has more than tripled its target for clean energy financing and investment, forecasting that the sector will mobilize $150 billion by 2025.
The expanded goal comes as the bank closes in on its original target of $40 billion after just four years.
Goldman Sachs’ updated Environmental Policy Framework says it will continue to look for opportunities across various mechanisms to invest in clean energy, including securitization, YieldCos and green bonds. It will also look for novel investment structures to bring energy to the more than 1 billion who lack access to modern energy services.
The spectrum of low-carbon technologies that could receive some of Goldman Sachs’ additional $110 billion is wide: solar, wind, sustainable hydro, biomass, geothermal, advanced biofuels, energy efficiency, energy storage, LEDs, electric vehicles and renewable energy transmission.
It will not just be energy. Access to clean water and water scarcity were both also outlined as opportunities ripe for investment, whether through green bonds, public-private partnerships, or debt financing for the municipal market.