Many concerned citizens and institutions around the world were disheartened when President Trump pulled out of the Paris Climate Agreement. According to leading global investment firm Morgan Stanley, it doesn’t matter much. The continuous drop in costs and the benefits surrounding green energy make it a rapidly more appealing option than its carbon-emitting cousins.
A top analyst at the firm says green energy will overtake fossil fuels by 2020. Don’t be fooled by Paris’s move to ban gas vehicles by 2040, or of Britain’s doing the same. These aren’t progressive policies but a recognition of an oncoming trend.
Stephen Byrd covers the North American power, utilities, and green energy sector for Morgan Stanley. He wrote in the report, “We expect the US to exceed the Paris commitment of a 26-28% reduction in its 2005-level carbon emissions by 2020.” Why is that? “Numerous key markets have reached an inflection point where renewables will have become the cheapest form of new power generation by 2020, a dynamic we see spreading to nearly every country we cover.”
Dropping costs in green tech will see fossil fuels overtaken by 2020. Getty Images.
That’s because green energy has grown far more efficient. Manufacturing is taking place at greater volume at lower cost, and solar and wind have developed to the point where they can supply vast amounts of energy to the grid.
When it comes to solar, producers have introduced innovative manufacturing techniques, making the process more efficient and less expensive. Installation prices have dropped as well. The quality of the solar cells has improved, too.
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