CNBC's Lee Ying Shan is reporting that S&P’s Dan Yergin related that money managers are shifting their attitude to ESG.
Renewable energy projects are facing challenges due to the substantial capital required for their implementation, according to S&P Global’s Vice Chairman, Dan Yergin.
Many fund managers are scaling back their environmental, social, and corporate governance (ESG) commitments, as they seek higher returns on investments. In the second quarter of the year, $635 million was withdrawn from U.S. sustainable funds, marking a total outflow of $11.4 billion in the past year.
The costs of offshore wind projects have increased by 40% compared to the previous year, and there remains a significant gap between the current investments in renewables and the funding needed to limit global temperature rises to 1.5 degrees Celsius. Factors such as rising costs of capital and supply chain disruptions are impacting the renewable energy sector.
(This article was written with assistance from ChatGPT)