Banks will have to supply 2 per cent of Europe’s GDP, or €2.9 trillion, to meet consumer demand for projects and technologies that tackle climate change, according to a new report from Barclays and Accenture.
The report took what it calculated to be the likely level of demand for things such as wind farms, energy efficiency measures and electric vehicles and estimated how much capital would be needed to fund these.
In a way, this looks like good news: demand is likely to be so high that it could provide a real opportunity for the banks. Rupesh Madlani, head of European renewables and cleantech equity research, told Energy Source: “There is a lot for the banks to play for here.”
Analysts are currently rushing out their forecasts for 2011, and one thing that almost everyone seems agreed on is this: oil prices will remain high.
Last week, Barclays predicted that oil would hit $100/barrel at points during the next year. Today, Moody’s has made a slightly lower prediction, saying that it expected prices to average around $80/barrel over the year. (It is worth pointing out that these two are not mutually exclusive).
As ever, the driving factor is Chiinese demand:
Oil finally moved sharply higher late in the year, thanks to continued strength in Asia (particularly China), a weaker US dollar and an improving outlook for western economies…
We expect these fundamental and technical dynamics to continue in 2011, keeping oil prices strong.
Oil prices neared 27-month highs yesterday, and analysts are expecting the run to go on and on. A survey of analysts yesterday by Bloomberg found they expected 2011′s average price to be the second highest ever.
Today, Barclays Capital has added to that sentiment, producing its list of five predictions for the oil price for 2011. Not one of them reads well for consumers.
Here are the bank’s five expectations for this year.