Awareness of The Climate Crisis
Reported deal activity in the renewable energy sector has been at an all-time high in 2022, and the trend looks set to continue.
"In just the past four years, global deal activity (around 40% of which involved a Europe-based target) has increased substantially. Within these deals, renewable energy is factoring in more and more. In fact, there were $425 million dollars' worth of deals involving an acquisition of a renewables developer in the first half of 2022 alone."
While socioeconomic factors and government net-zero targets do play a part in increasing interest in the renewable energy sector, a lot of this demand can also be explained by the climate crisis being ever-present in everyone's minds.
Younger investors, who have come of age in an increasingly warmer world, are thinking to the future and prioritizing environmental, social and governance (ESG) opportunities.