Goldman bets $150bn on renewables by 2025
The investment bank yesterday said it would build upon its existing $40bn pledge by notching up its 2025 global investment target to $150bn in capital designated for renewable energy projects.
The pledge comes after Goldman began to distance itself from fossil-fuel assets, led by its initial divestment from coal holdings this summer, when it sold its stake in Colombian coal mines to Murray Energy. The pivot towards renewables and low-carbon assets is as much a business venture as it is a quest to cultivate goodwill among stakeholders and policymakers ahead of the UN climate talks in Paris that start this month.
The company was one of a handful of corporations that last month committed to 100pc renewable power for its global operations by 2020, joining Nike, Apple, Google, Microsoft and General Motors.
Cash from Goldman in the venture will initially come as a $2bn investment toward securing power purchase agreements to help meet the 100pc renewables goal.
Other financing will likely materialize through different vehicles. This could mean advising on initial public offerings or debt structuring for certain renewable energy-related companies, like it has done for renewable energy companies NRG Yield, NextEra Energy Partners and TerraForm Power.
It could also take the form of multi-million-dollar credit lines extended to renewable developers like SunEdison and Conergy to finance projects. Goldman could ultimately own or sell those projects upon their completion.
Goldman says it has played a role in financing $65bn in low-carbon energy projects globally since 2006.