Renewable energy will take the largest proportion of expenditure in the energy sector in 2021, which unprecedentedly exceeds the one of oil and gas, according to Goldman Sachs Research.
This proportion was at 15% in 2014 but it is expected to reach 25% by 2021 promoted by bifurcating cost of capital up to 20% for long-term oil projects and down to between 3% and 5% for renewables.
Goldman Sachs also said that clean technology will become a major electricity supply in the future economic recovery from coronavirus. The back estimated that it can drive $1 to 2 trillion of green infrastructure investment and offer 15-20 million jobs in the world via public-private collaboration, low financing costs and a supportive regulatory framework.
Compared to traditional energy developments, green infrastructure has more potential and job intensive in generating per unit of energy produced. However, a stable, attractive regulatory framework and a low cost of capital is required to build a good example of pro-environment public-private collaboration.