Citola Blog
Low-carbon Market to Treble by 2020 to US $2.2 Trillion
The world’s low-carbon energy market is likely to treble to US $2 Trillion by 2020, according to a report from HSBC equating to a compound annual growth rate of ~ 11% over the next 10 years. Currently, the European Union (EU) accounts for 33% of the low-carbon market, followed by the USA (21%) and then China (17%).
The overall rationale is that growing pressure on natural resources (i.e. land, water and energy) as a result of the growth in emerging economies, world population and Gross Domestic Product (GDP) will provide momentum towards a more efficient “climate economy”.
“A new climate is starting to emerge, driven as much by resource scarcity and industrial innovation as by the raw realities of global warming,” the HSBC report said. And the amount of upfront capital that is required in the ‘green’ economy will more than triple to US$1.5 Trillion per year in 2020.
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