HSBC has revised its estimates of the billions of money spent last year by governments on green stimulus packages downwards, from $94bn to $82bn, citing the difficulty in actually spending the money.
As lead analyst on the report, Nick Robins, told the FT:
“When we were first looking at the green stimulus, last February, we had not fully appreciated all of the administrative issues surrounding the disbursement of this money,” he said.
However, Robins and the report’s other authors believe that much of that spending will simply shift into this year and the next. Like this:
Robins told the FT that the US is ‘on track’ to spend the money, but:
If money is not spent by the end of this year, Mr Robins warned, there was a risk that in some countries it would be axed “owing to austerity measures generally”.
Not to mention the growing backlash against stimulus money for some renewable projects – particularly wind farms - based on the idea that it’s supporting foreign manufacturing. This is gaining some serious traction in the US, with Democratic Senator Charles Schumer introduced a bill last week to ensure all green stimulus money goes to local manufacturing, despite opposition from the wind industry itself.
Renewable energy and domestic content (Energy Outlook)
Green stimulus and the dangers of ‘buy American’ (FT Energy Source)
China’s lead on alternatives is not as significant as it seems (FT Energy Source)