U.S. Climate Envoy John Kerry speaks at a press conference at the White House in Washington on January 27, 2021.
Kevin Lamarque | Reuters
John Kerry, the U.S. special envoy on climate, is currently in talks with leading financial firms about mobilizing capital for green technology and clean energy as President Joe Biden seeks to get the country’s economy on the path to net zero emissions 2050.
“I’m in talks with a number of our largest asset managers and major banking institutions with the hope that we can understand where capital might come from and how it can get into those sectors,” the former foreign secretary told anchor Brian Sullivan at a CNBC Evolve event on Thursday.
Kerry said he had no doubt that a clean energy partnership between the private sector and the federal government will emerge. The Biden government has proposed $ 2 trillion in investments to help build a green economy.
Kerry pointed to the growing popularity of ESG investments – or environmental, social and governance investments – as an example of the active private sector. He also pointed to the use of shell companies known as SPACs, or Special Purpose Acquisition Companies, to fund green energy.
“What you are seeing with the plethora of SPACs in place, as well as other investments, is that there is going to be a race in that direction and that is exactly what we need,” said Kerry.
Kerry’s comments come two days after Axios reported he called Wall Street veteran Mark Gallogly to his international climate team.
Data suggests that climate-related industries and jobs are growing in the US and globally.
The world invested $ 501.3 billion in renewable energy, electronic vehicles, and other low-carbon technologies in 2020, Bloomberg reported.
Generate Capital forecast investments in solar and wind energy in the US totaling $ 55 billion in 2020. Earlier this week, the Department of Energy announced that it had appointed Generate Capital co-founder and former solar industry manager Jigar Shah as director of its loan programs bureau, which oversees over $ 40 billion in credit agencies.
The US Bureau of Labor Statistics predicted that wind turbine technicians will be the fastest growing occupation from 2019 to 2029, with solar photovoltaic or solar panel installers being the third fastest.
“If America races in this direction with capital movements, that capital allocation will make a decision for all of us and will ultimately result in the creation of significant wealth and jobs,” said Kerry.