High Interest Rates Could Slow Down the Energy Transition

Renewable energy projects and emerging low-carbon technologies are more exposed to the current high interest rate environment globally, which could slow the pace of transition to clean energy, Wood Mackenzie said in a new report on Thursday. The rising interest rates in many major renewables markets in the past two years have significantly raised the cost of capital for new projects, the energy consultancy says. Global monetary policies are set to remain much higher in the coming decades than the near-zero interest rate period in…