· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Financial Times or enjoy below:
🗞️ Driving the news: European companies, including luxury fashion houses like Prada and Ferragamo, are not waiting for governments to act on renewable energy
• They're taking matters into their own hands by signing long-term power purchase agreements (PPAs) to foster the construction of new solar and wind projects
🔭 The context: These PPAs are a direct response to the energy crisis and a move towards corporate-driven renewable energy expansion in Europe
• The International Energy Agency predicts that corporate PPAs will account for a significant portion of new renewable capacity in the coming years
🌍 Why it matters for the planet: By securing renewable energy through PPAs, companies are not only ensuring price stability but also contributing to the acceleration of the transition from fossil fuels
• This market-led procurement is essential for meeting the growing number of corporate decarbonization targets
⏭️ What's next: The challenge lies in scaling these agreements beyond large corporations to include mid-sized and small companies, which is vital for the broader success of the energy transition
💬 One quote: "Setting the target isn't the problem. Finding enough renewable energy to fulfill it is" (Peggy Hollinger, Financial Times)
📈 One stat: The annual funding gap in renewable energy investment is estimated at about $700bn a year to 2050, underscoring the need for substantial corporate involvement in energy financing
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