We are at an inflection point when it comes to the deployment of clean technology and renewables. Goldman Sachs is targeting $150 billion to finance and invest in companies that promote clean technology and renewable energy, and we are committed to helping to develop market-based solutions to environmental challenges.
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Direct lithium extraction poised to boost production for batteries
Lithium is a key ingredient in batteries for electric cars and renewable power storage, making it a critical commodity for the energy transition to reduce emissions of greenhouse gases. Most of the world’s lithium supply is currently produced in Australia and processed in China, but that could change during the next decade as new technology such as direct lithium extraction, or DLE, helps ramp up production of this key resource from brine, according to Hugo Nicolaci, an analyst in Goldman Sachs Research.
Value through Values: Sustainability is Growth Investing
Investors are increasingly asking if companies are tapping into growth areas such as the energy transition and the waste-reducing circular economy, says Bertie Whitehead, managing director and EMEA head of ESG in Investment Banking at Goldman Sachs. “We used to call these megatrends, but it’s simply growth investing. This is where capital is going.
The Green Technology Cycle: SiC
The outlook for increased Silicon Carbide (SiC) uptake as a more efficient alternative to silicon that can save costs and improve performance, especially in automotive applications, has accelerated over the past half year. Goldman Sachs Research analysts now expect an inflection point for rapid market growth potentially two years sooner than projected.
Green Capex: Greenflation, Returns and Opportunity
Green Capex will be the dominant driver of global infrastructure over the next decade and will be critical for achieving Net Zero, Infrastructure and Clean Water goals. In this report, Goldman Sachs Research analysts explore rising capex and R&D expectations, and consider government commitments to increase or stimulate Green Capex.
Batteries: The Greenflation Challenge II
In this report, Goldman Sachs Research analysts discuss six key topics about greenflation that are relevant to investors and increase their battery pack price forecasts.
Batteries: The Greenflation Challenge
Ever-increasing demand, component shortages and rising raw material prices are now challenging the long-standing consensus that battery prices will continue to decline in the coming decade. To assess the impact of this “Greenflation” and potential supply chain bottlenecks ahead, Goldman Sachs Research introduces a proprietary battery pack price and cost curve model, supply-demand models across battery components and a bear case battery TAM scenario.
Electrify Now: The rise of Power in European Economies
While previous Goldman Sachs Research has focused on the 2050 net zero end game, here they explore a more immediate, more tangible topic; one that is poised to revolutionize European economies and our everyday lives: the urgency of electrification.
EU Taxonomy Update - Inclusion of Natural Gas and Nuclear
The European Commission has released plans to include some natural gas and nuclear energy power plants as ‘green’ under the existing EU Taxonomy’s Climate Change Mitigation objective. We believe this would help provide some guarantee to Europe’s volatile energy supply as renewables scale and help ensure a smoother transition to a low carbon economy.
China Net Zero: The Clean Tech Revolution
Sharmini Chetwode, head of ESG Research in Asia for Goldman Sachs Research, discusses China’s pledge to be carbon neutral by 2060 and the key technologies that will be critical to achieving this target.
Carbonomics: Innovation, Deflation, and Affordable De-carbonization
Net zero is becoming more affordable as technological and financial innovation, supported by policy, are flattening the de-carbonization cost curve. Goldman Sachs Research updates its 2019 Carbonomics cost curve to reflect innovation across c.100 different technologies to de-carbonize power, mobility, buildings, agriculture and industry, and draw three key conclusions.
Green Hydrogen: The Next Transformational Driver of the Utilities Industry
Green hydrogen looks poised to become a once-in-a-generation opportunity: Goldman Sachs Research estimates it could give rise to a €10 trillion addressable market globally by 2050 for the Utilities industry alone.
Carbonomics: The Rise of Clean Hydrogen
Clean hydrogen has a major role to play in the path towards net zero carbon, providing de-carbonization solutions in the most challenging parts of the Carbonomics cost curve - including long-haul transport, steel, chemicals, heating and long-term power storage.
Sustainable ESG Investing: Turning Promise into Performance
Environmental, social and governance (“ESG”) investing is at a deep level all about sustainability, yet we rarely ask the question, “How sustainable is ESG investing itself?” Here, we seek to provide a clearer sense of where ESG investing fits in the broader scope of active asset management, examine the gaps it fills and use that assessment to better structure the ESG investing processes, assess its place in asset allocation and rethink the metrics we apply to it.
Carbonomics: The Green Engine of Economic Recovery
Clean tech has a major role to play in the upcoming economic recovery. Leveraging our Carbonomics cost curve, we estimate that clean tech has the potential to drive US$1-2 tn pa of green infrastructure investments and create 15-20 mn jobs worldwide, through public-private collaboration.
The Future of Sustainable Nuclear Energy
Heath Terry of Goldman Sachs Research explores clean energy and the advances in nuclear power technology as part of his team’s Venture Capital Horizon series.
Carbonomics: The Future of Energy in the Age of Climate Change
Climate change is re-shaping the energy industry through technological innovation and capital markets’ pressure.
Unpacking the Shift to Sustainable Packaging
With 15 to 20% of all consumer goods sold via the internet today, the need for packaging to deliver goods quickly and cheaply is increasing as the global focus on sustainability gains momentum. Kristy Grippi of Goldman Sachs’ Investment Banking Division explains how these trends – along with the shift towards consumer-centric retail – are driving innovation across the paper and packaging industry. Watch Video
The Plastics Paradox
The increasing pressure to reduce single-use plastic and changing consumer behavior is putting a question mark on the long-term demand growth of the plastics industry. Nikhil Bhandari of Goldman Sachs Research explains how efforts to limit plastic’s environmental impact could affect the industry over the next decade. Watch Video
The Shift to Clean Energy
The shift to a low-carbon economy is changing the competitive landscape of the energy industry. Goldman Sachs Research explains how big oil and utility companies are finding new opportunities as they transition to a renewable future. Watch Video
Hybrid Acceleration
While expectations for electric vehicles have been scaled back since 2017, one segment of the market is powering forward: hybrids. Goldman Sachs Research explains why “electrified” or hybrid vehicles will be the most profitable and practical solution to reducing dependence on internal combustion engines over the next decade. Watch Video
Scott Harrison, Founder and CEO of charity: water
Charity: water CEO Scott Harrison discusses his journey from nightclub promoter to philanthropist, his work to bring clean water to underserved communities around the world, and how he is disrupting the way nonprofits recruit talent. Watch Video
Sustainable Finance Innovation Forum 2018
On November 13th, Goldman Sachs hosted the Sustainable Finance Innovation (SFI) Forum, which convened 400+ leading corporates, investors, public sector representatives and non-profit organizations alongside Goldman Sachs representatives to discuss the key themes shaping markets and sustainability. Learn More
NextGen Power: Solar to Transform Europe’s Energy Mix
Solar costs have plummeted by 80% since 2010, which is game-changing for power markets as it removes the main obstacle preventing renewables from dominating the energy mix: the cost of energy from large-scale PV plants is now lower than that of conventional fossil fuel plants. Read Report
Jeff Orlowski, Exploring the Global Effects of Climate Change
In director Jeff Orlowski’s award-winning documentary films Chasing Ice and Chasing Coral, he documents the devastating impacts of climate change on ecosystems around the world – from the Arctic glaciers to the Great Barrier Reef. In this discussion, he describes capturing those impacts on film while also offering an optimistic set of solutions for the future. Watch Video
The Solar Story
Brian Lee of Goldman Sachs Research explains why the outlook for US solar remains positive, despite near-term policy uncertainty for renewable energy. Watch Video
The Power Shift
On the path to a Low Carbon Economy, the European utilities sector offers a case study in navigating the challenges of transitioning to renewable fuel sources. Goldman Sachs Research’s Alberto Gandolfi explains. Watch Video
3 Drivers of the Low Carbon Economy
Kyung-Ah Park, head of the Environmental Markets Group at Goldman Sachs, discusses the key developments catalyzing the transition towards more sustainable global growth. Watch Video
Niche No Longer: ESG Investing Goes Mainstream
On the this episode of our podcast, Exchanges at Goldman Sachs, John Goldstein of Goldman Sachs Asset Management explains why more and more money managers view environmental, social and governance factors as essential to a rigorous investing approach. Listen Now
Clean Energy: The Future Is Here
By 2030, renewables will account for half of the world's energy mix. Learn about the new technologies and financial innovations that are driving this transformation. View Infographic