Mining Industry ‘to Spend $20bn on Renewable Energy and Conservation by 2020′
Worldwide investment by the mining industry in renewable energy and energy conservation will reach about $8.4 billion by 2016 and nearly $20 billion by 2020, according to a new report from Pike Research.
And under a more aggressive scenario, in which the global economy expands more rapidly and policy mandates pertaining to climate change are more robust, spending could reach $15.6 billion by 2016 and $30 billion annually by 2020, the cleantech market intelligence firm forecasts.
Ever-increasing pressure from governments, customers, and other stakeholders will drive this shift toward solar, wind geothermal and other renewables, according to the report. Several companies are already using carbon credits and carbon trading to augment revenue streams and address climate change regulations and taxes, it says.
The Asia Pacific region, which has seen its market share of the worldwide mining sector increase to 44 percent in the last decade, will see the greatest investment in renewable energy in the mining industry through 2020, at $9.4 billion, Pike Research says. In the United States, the market will reach $4.6 billion in the same year.
In general, Pike expects mining’s investments in renewable energy technologies will range from 10 percent to 20 percent of total energy expenditures during the forecast period.
A Pike Research report published earlier this month says the telecom service industry will invest more than 61 percent of its capital expenditures into sustainable infrastructure by 2016, representing a $194 billion market.
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