Switched On

Banks are still spending less money on low-carbon solutions than on fossil-fuel projects. At last count, the energy supply ratio for bank financing was just 0.89 cents of low-carbon spend for every $1 spent on fossil fuels. That’s an improvement over previous years, but with a ratio of 4:1 by 2030 required to meet a 1.5C climate scenario, the world is still a long way from hitting that target. On today’s show, Tom Rowlands-Rees is joined by analyst Trina White, a member of BNEF’s sustainable finance team, to discuss the third annual Energy Supply Investment and Banking Ratios”. Together they discuss worldwide and local trends in energy financing, which banks have the highest energy financing ratios, and why the average ratio is still below 1:1 even though global clean energy investment has hit a new record and surpassed fossil-fuel financing for the first time. Complementary BNEF research on the trends driving the transition to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com Links to research notes from this episode: Third Annual Energy Supply Investment and Banking Ratios - https://www.bnef.com/insights/35765See omnystudio.com/listener for privacy information.

Chinese wind turbine makers are expanding their global footprint at an impressive rate. Leading manufacturers like Goldwind, Envision, Mingyang and Windey are exporting their turbines at a significant discount to Western incumbents, undercutting their rivals and establishing themselves in developing economies and emerging markets. Yet while the volume of their orders has risen, significant barriers to entry remain, including low brand awareness, a limited track record outside of China and political risks that are raising red flags for buyers, lenders and insurers. So just how large is the threat these Chinese manufacturers pose to established Western companies? On today’s show, Tom Rowlands-Rees is joined by Oliver Metcalfe, BloombergNEF’s Head of Wind, to discuss the note “China Wind Turbine Export Update: Momentum Builds”. Complementary BNEF research on the trends driving the transition to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com Links to research notes from this episode: China Wind Turbine Export Update: Momentum Builds - https://www.bnef.com/insights/35671/viewSee omnystudio.com/listener for privacy information.

Pietro Radoia, a solar specialist at BloombergNEF, and Ryan Loughead, a sustainable finance analyst, discuss the intriguing shift of clean energy companies from public markets to private hands. They dive into the soaring valuations of these firms and the impact of rising energy demands fueled by data centers. The conversation highlights the potential of private equity as a stable funding source amid fluctuating public valuations. Key challenges like grid connection bottlenecks are addressed, showcasing the urgency for tailored financing strategies in the clean energy transition.

Albert Cheung, Deputy CEO of BloombergNEF, dives into the mixed results of clean energy in 2024, revealing record EV sales and clean power gains yet highlighting critical shortfalls in achieving net zero by 2050. He discusses five key lessons for the energy transition, addressing the challenges of insufficient investment while emphasizing the resilience of clean energy initiatives. Cheung also spotlights the urgent need for improved policies and collaboration in emerging sectors like hydrogen and offshore wind to foster a sustainable future.

Fauziah Marzuki, BloombergNEF’s Global Head of Gas Markets, shares insights on the turbulent natural gas landscape as it heads for a critical test in 2025. She emphasizes how geopolitical shifts, like the impact of the Russia-Ukraine conflict, are affecting trade flows. The discussion highlights the surprising role of extreme weather in changing gas demand, driving unexpected price surges in summer. Fauziah also tackles the evolving LNG pricing landscape and the implications for global energy security amidst oversupply challenges.

Sami Alisawi, a geologic hydrogen expert from BNEF, and Musfika Mishi, a tech and innovation specialist at BNEF, explore the fascinating potential of gold hydrogen—an accessible, eco-friendly alternative to conventional hydrogen. They discuss its economic viability, highlighting successful case studies like a significant hydrogen find in Mali. The duo also addresses the technological hurdles in extraction and transportation, and the intriguing synergies with helium extraction that could shape the future of the hydrogen market.

Mariko O’Neil and Yumi Kim, analysts from BNEF’s Global Power Markets Team, dive into Japan's power market, exploring its fascinating evolution post-Fukushima. They discuss the liberalization that has attracted foreign investors and the unique challenges of relying on imported fuels. With rising power demands from data centers and semiconductor manufacturing, they unveil opportunities for energy installations. Additionally, they address crucial topics like the role of nuclear energy and Japan's potential leadership in regional energy transitions.

Chris Gadomski, BloombergNEF’s lead nuclear analyst, discusses the intriguing revival of nuclear power driven by data-hungry tech giants. He emphasizes the potential of small modular reactors (SMRs) while addressing the challenges of new nuclear projects, including regulatory hurdles and cost concerns. The conversation dives into the impact of global events on nuclear perceptions and explores the shortage of skilled labor in the industry. Gadomski also highlights the innovative approaches tech firms are exploring to enhance energy sourcing amid rising demands and climate challenges.

Andrew Forrest, Founder and Executive Chairman of Fortescue, is on a mission for 'real zero' emissions. He shares insights from the BNEF Summit Shanghai about how green hydrogen and green iron are pivotal to sustainable mining. Forrest emphasizes the economic benefits of abandoning fossil fuels and discusses the growing demand for clean transport components in China. He tackles the challenges in the green hydrogen sector and the importance of mental health, advocating proactive strategies for well-being in both personal and professional life.

Emerging markets have big plans when it comes to the energy transition. Today, 95% of developing economies have a renewable energy target in place, and many of them are seeing massive growth in solar and other renewable power technologies. Yet this clean power revolution won’t come cheap. While EMDEs attracted more than $100 billion for clean energy development last year, that’s a drop in the bucket of what it’ll take to reach net zero, and many markets are racing to implement the policy and infrastructure needed to attract many billions more. On today’s show, BloombergNEF researchers Sofia Maia and Ana Paula Fonseca Teixeira present the newest edition of Climatescope, a public BNEF resource that evaluates and ranks emerging markets’ readiness to utilize energy transition investment. Complementary BNEF research on the trends driving the transition to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com Links to research notes from this episode: Climatescope 2024 - www.global-climatescope.org    See omnystudio.com/listener for privacy information.