Interest rates and the green economy: The carbon cost of higher for longer

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Interest rates and the green economy: The carbon cost of higher for longer

High interest rates have created strong headwinds for the global energy transition, according to a new report by Wood Mackenzie.  The report said renewable energy and low-carbon technologies are among the areas “most exposed” to high interest rates.  The high capital intensity and low returns on green projects make them particularly vulnerable to high rates.  “Interest rates… may not come down as far or as quickly as markets anticipate. This inc…