EUROPE risks an exodus of clean energy investment to the US, unless it brings in its own inflation reduction strategy, Goldman Sachs has warned.
The investment banking titan has estimated the US Inflation Reduction Act could drive up to $1.5 trillion of capital mobilisation into clean energy projects by 2032, with $675bn in direct investments.
It argues this could kick-start the “electrification of America” by vastly transforming its power generation and infrastructure.
This would include boosting the base of installed renewable projects from 300GW to over 1,000GW in the next 10 years, while also promoting the manufacturing of solar, renewable energy storage and carbon capture technologies.
In a research note, Goldman Sachs warned, however, that this “attractive level of support” could pose a risk to Europe’s leadership in clean energy.
The bank also said that a successful effort to…
Europe warned to up its clean energy game
