|
Laxman Pai, Opalesque Asia: As the overall infrastructure market plunged in the first quarter of 2019, the number of renewable energy transactions also slowed, said Preqin.
The Preqin Insights attribute the reasons for lacklustre deals to a combination of factors: sourcing suitable renewable assets have been challenging, interest in the market has ensured a more competitive environment, and - the time taken to complete deals has increased due to the demand for large-scale assets.
Furthermore, oil & gas entity-level deals dominated Q2 transactions in terms of their financial size - these are companies that specialize in operating natural gas pipelines and terminals.
The pressure to take action on the Paris Agreement is therefore not as widespread as it should be to reach the agreed goals.
Paris Agreement targets $100bn in annual climate funding by 2020
In the Paris Agreement of 2016, a group of developed countries pledged to provide $100bn in annual climate funding by 2020.
The global action plan aims to avoid dangerous and irreversible climate change by limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C.
In response to the Agreement, renewable energy deals hit (what was at the time) the highest quarterly number of recorded transactions in Q4 2016.
Since then, the figures have continued to rise and Q4 2017 set a new record with 1,615 renewable energy deals, followed by 1,508 deals in Q4 2018.
...................... To view our full article Click here
|