September 24, 2023

The Green Fund ranks trillions behind global energy change

The world’s largest corporations and deep-pocket investors are lining up trillions of dollars to fund some fossil fuels.

Assets in investment funds have reached nearly $ 2 trillion globally in the first quarter, somewhat centered on the environment, which has tripled in three years. Investors pay $ 3 billion a day into these funds. Loans designed to finance more than $ 5 billion in bonds and green initiatives are now issued every day. Two major US banks have pledged $ 4 trillion in climate-based funding over the next decade.

James Chapman, chief financial officer of Dominion Energy Inc., one of the country’s largest utilities, said: “We have come to the forefront and beyond. Dominion, which has begun issuing green bonds, plans to spend $ 26 billion or more over the next five years on clean energy such as wind and solar.

Following years of uninterrupted enthusiasm and expectations, green funds are now seen as less of a major interest of socially conscious investors and less of a constant gold rush. Motivated by increasing ratings for electric-vehicle companies such as Tesla Inc. and start-up battery manufacturers, it is here that banks and investors are turning away from fossil fuels, and they can make money by going backwards, further confirming the change.

Behind the geyser of capital lies the confluence of forces. Big money managers see opportunities for substantial profits, too Worry about the financial risks associated with climate change. Many of their clients – giant pension funds and fast-trading young investors – want to keep their wallets afloat in order to prevent environmental damage.