Energy Security Concerns Driving Low Carbon Investments
Energy Security Concerns Driving Low Carbon Investments
Did the war in Ukraine trigger it?
Ukraine War and its Impact on Global Energy Security
The Ukraine War has had a profound impact on global energy security, and geopolitical risk. The war has also resulted in increased energy security risk, as the disruption of supply routes and the destruction of infrastructure have posed a threat to the global energy market. The war has also had a significant impact on the geopolitics of gas exports, which is threatening energy security across the world. Ukraine is Europe's third largest country for natural gas production, with 17 trillion cubic feet (tcf) of proven reserves. Sanctions on Russia and its entities, have made it difficult to get investment for new exploration, production and export of natural gas in Russia. Countries including the UK are considering ‘carbon bombs’ which are huge hydrocarbon projects to secure their energy future, but there is a silver lining to this, in the form of increased funding being available for low carbon projects.
Low Carbon Investment & M&A in the Race for Energy Security
The war in Ukraine and the sanctions on Russia have caused a shift in the global energy landscape. This has led to an increased focus on low carbon investments and M&A activities as countries strive for energy security. The need for low carbon investments is driven by the need to reduce emissions and mitigate climate change. Low carbon investments are also seen as a way to reduce dependence on fossil fuels, which are becoming increasingly expensive due to geopolitical tensions. M&A activities are also being used as a way to increase energy security, with companies looking for strategic acquisitions that will give them access to new technologies or markets. Low carbon M&A is becoming increasingly popular as companies look for ways to reduce their environmental impact while still achieving their business goals.
US Inflation Reduction Act & Its Impact on Green Investment
The US Inflation Reduction Act of 2021 has been a major step forward in the fight against climate change. The act seeks to reduce inflation and promote green investment by providing incentives for businesses to invest in low-carbon technologies and projects. It also provides tax credits for investments in energy security, renewable energy, and low-carbon M&A. This act is expected to have a positive impact on green investment in the US, as well as Ukraine's war-torn economy. By encouraging businesses to invest in low-carbon technologies and projects, the US Inflation Reduction Act will help create jobs and spur economic growth while reducing emissions. Additionally, it will help ensure energy security by increasing access to clean energy sources such as solar and wind power. With this act, the US is taking a major step towards achieving its goal of becoming carbon neutral by 2050.
A Few Recent Transactions....
Cambridge-based Risilience, which runs a platform to help businesses plan for climate risk and net zero scenarios, raised a $26m Series B round led by the Quantum Innovation Fund.
The European Union announced its Green Deal for Net Zero, last week.
Bulgaria based Ampeco, which has a good foothold in the US, raised $13 million Series A round.
Kanpla, a Danish startup that focused on reducing food waste, raised a $14 million seed round.
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