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How higher interest rates could hold up energy transition investment
The energy transition won’t come cheap. Most of the investment in the transformation to a low-carbon energy system will be debt-financed, whether the US$52 trillion we project in our base case over the next three decades or the US$75 trillion to deliver net zero. So how will higher interest rates affect investment across the energy and metals and mining sectors? I asked the authors of last month’s Horizons insight on the topic, Peter Martin, James Whiteside, Fraser McKay, and Srinivasan Santhakumar. Will interest rates be higher in future than investors have been used to? Most likely. Interest rates may come down ... (full story)