Saving energy has never been so lucrative, or so effective

(bloombergs, 19 May 2016) For energy investors, saving energy has never been as profitable as producing it. That’s starting to change, with institutions from Deutsche Bank AG to Societe Generale SA making it bankable to squeeze more out of electricity and fossil fuels.

Their efforts have the potential to channel more money into energy-saving beyond the $45 billion reaped in 2014, blunting demand for fossil fuels and the global-warming pollution they create, according to data compiled by Bloomberg.

It’s already starting to add a profitable line of lending, supported by state-backed groups such as the European Investment Bank and KfW of Germany. By 2030, efficiency may reduce the bills of energy consumers by $86 billion, eliminating the need for hundreds of power plants around the world, according to the International Energy Agency.

“Energy efficiency has had difficulty getting finance from banks because they’re used to financing something they can see,” said Jessica Stromback, chairman of Joule Assets Europe AB. “It’s is about a reduction, a gap. They can’t really grasp the concept of paying for something that isn’t there.”

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bloombergs, 19 May 2016: Saving energy has never been so lucrative, or so effective