We now have our answer, on why the heck some interest groups started to finance initiatives to influence young people to dream of religious concepts again.
Demand side for sustainable investment portfolios is up in the generation that is currently (and will be in the next years) inheriting money from their parents. They are restructuring their investments and thereby filling a large part of the investment gap in Europe with private investment money.
To be absolutely clear - they do so, in a short term, going against informed investor and (institutional) long term investment trends - so getting out less return on investment than if they would not do that. (Long term different story.)
Deutsche Bank even has problems getting their portfolios ready, because the investor demand looking for yield - never went into that direction.
So there you have it. It worked. Young people in my generation inhereting wealth, are investing wrongly - for better social cohesion, short term. Maybe.
In Europe they are largely financing the retrofitting projects (thats our "infrastracture investment" out of the crisis, making the houses of the rich folks better), while the large investment fonds only sponsor green projects up to 30% - with recovery money - because they have to see to it, that society doesnt tank for a lack of job creation.
European Investment Bank is financing green initiatives to a larger extend, but also trending down (short term), as their funds also are needed to get out of the Covid crisis. That they are pushing sustainable financing is fine btw. They are the ones that should.
Issue - we are not doing this through structural investments, we have an actual financing gap of roughly 300bn (hope I remember that number correctly), where the private sector is supposed to jump in.
Investors? Mostly people inherenting boomer money being ethically driven investors (great). Mandatory laws (EU), that those packages have to be presented to clients (nudging) also helped. (*sark*)
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In other news - US just doubled their commitments on CO2 reduction compared to what the Obama administration pledged. But thats not through senate yet, and it will have a hard time going through.
In essence, US is going heavily into carbon capture and storage, will use biofuels, will switch to gas instead of oil where possible, and sometime in the far future - move towards renewable energy production only.
On how much they are investing into R&D on green energy technologies, I have no feel yet. The person heading the US initiative in that sector seems - like a bureaucratic pick, so maybe not 'moonshot' level investments yet..
More info should become available once COP comes around, the current administrations blueprint is very vague.
https://www.whitehouse.gov/briefing...-u-s-leadership-on-clean-energy-technologies/
But they significantly upped their commitment.
Issue - without a CO2 tax - you arent going onto a reduction pathway anytime soon. (Carbon capture and storage aside.) So - words.
edit: src:
https://www.barrons.com/articles/u-...ious-climate-strategy-expert-says-51619100610
edit: Oh, and in the US the private sector investment funds on the topic are basically non existent - but "its growing". So, yeah.