Barclays today publishes its third Social Intelligence report, entitled ‘Carbon Capital: Financing the low carbon economy’.
Written in partnership with the global consultancy company Accenture, the study examines the role of banks in accelerating the shift to a low carbon economy. The research estimates that €2.9 trillion in capital is required to fund the development of low carbon technologies to meet European carbon emissions targets.
Pierre Nanterme, Accenture Chief Executive Officer, said: “Financing low carbon technology represents a unique opportunity for banks to benefit from the significant growth of the low carbon technology sector whilst demonstrating a positive contribution in tackling climate change”.
Carbon Capital: Financing the low carbon economy explores some new funding models that can be used to accelerate capital flows to the sector, particularly access to deep and liquid bond markets. These will require effective partnerships between banks, investors, project sponsors, rating agencies and public sector actors to increase bond market financing.
Barclays and the wider banking sector will play a key role in mobilising this capital. However, technological factors and policy uncertainty increase investment risk, making it a significant funding challenge.
Writing in the publication’s foreword, Marcus Agius, Barclays Group Chairman, said: “There may be a need to create instruments to share risk so that initial transactions can help establish a track record and build investor confidence.
“We at Barclays remain committed to playing a leading role in tackling climate change and enabling the transition to a lower carbon economy.”