An accelerated shift in government policy, corporate policy and capital deployment strategy are precipitating enormous investment that is driving global growth in climate finance to an estimated $9 trillion by 2030. A new study, “Climate Finance: A Massive Commercial Opportunity for Equipment Finance,” released by the Equipment Leasing & Finance Foundation (Foundation) provides an overview of the climate finance opportunity by industry and asset type, reviews the current nature of financing by equipment finance companies, and provides a roadmap for industry participants to chart their course in climate finance.
The comprehensive study was commissioned by the Foundation and prepared by The Alta Group. It utilizes a multipronged approach, including a compilation of available market data, a survey of members of the Equipment Leasing and Finance Association’s Climate Finance Working Group, and in-depth interviews with participants in climate finance across the equipment finance industry.
Among the in-depth research and analysis in the study are:
- Executive summary intended to be a stand-alone document summarizing all the content in the paper.
- Overview of the global climate finance market.
- Review of participation In climate finance across the industry today and examination of key segments, including solar finance, energy efficiency, electric vehicles (EV), energy storage, and green hydrogen.
- Information and resources to aid in the analysis of market considerations.
- Asset management and risk considerations.
- Current headwinds and tailwinds in climate finance.
“Taking advantage of the sizable opportunities of providing climate finance involves the application of best practices and the mitigation of both traditional and emerging risks,” said Valerie Gerard, Foundation Research Committee Chair and Co-CEO of The Alta Group. “This study aims to accelerate the equipment finance industry's understanding of climate finance, and offers a roadmap for equipment finance companies to develop their own strategic and tactical plans toward successfully participating in this market.