Banking on Net Zero

The global energy transformation must take place on the scale of the industrial revolution at the speed of the digital transformation; therefore, we need a revolution in capital markets. This requires a significant mobilisation of capital to fund the adoption and commercialisation of breakthrough decarbonization technologies.

Davy Decarbonization Corporate Finance hosted climate-focused innovators, impact-driven investors, policymakers and industry representatives at its inaugural panel discussion and networking event, Banking on Net Zero. Discourse focused on financing a carbon neutral future.

Alongside the event, Davy Decarbonization’s Senior Policy Director, Dr. Fergal McNamara, presented his white paper, Identifying the Opportunities in an Accelerated Energy Transition, which you can download from the link on this page. 

Minister for the Environment, Climate and Communications, Eamon Ryan, gave a virtual address, outlining the governments measures to support the energy transition to meet our 2030 climate goals.

Key takeaways:

• Intervention Understandable – Energy prices have risen sharply. This is taking place in the dreadful circumstances of a war on the continent. In this light, political intervention is understandable – if not inevitable.
• Singular Interventions – At EU level, interventions to relieve price pressure are characterised as ‘emergency’ and ‘temporary’ and responsive to ‘exceptional circumstances’. Interventions are bounded, i.e. limited and proportional. A long-term review of the electricity markets has been announced so that the interventions are therefore not isolated or once-off.
• Tackle Root Cause – Accelerate the Transition – The increase in the cost of, and dependence on, fossil fuels originating from Russia is the root cause of the turmoil in commodity markets. This has led to a renewed consensus to move away from fossil fuels, with the commitment to the energy transition reinforced.
• Enhanced Public-Private Partnership – The energy transition has been set up to engender a deep collaboration between a wide range of public and private bodies and, specifically for these purposes, between government and private financial markets. The acceleration of the transition now requires an even deeper level of public-private partnership.
• Security-of-Supply Imperative – Ireland has an additional concern about security-of-supply, which is an essential public good. The government has made significant progress on the policy framework, and the political and official momentum behind the transition is strong. This now needs a corresponding strong response from the private sector and investors to succeed.
• Invest Now – The transition needs to attract investment of €60-100 billion by 2030. The pace and success of this will in large measure depend on the ingenuity of individual firms. Investment is particularly required in infrastructure, renewables, storage, hydrogen and renewable gas.