Motivation
Climate change is one of the most critical challenges of our times. As reported by NASA, the past nine years (as of 2023) have been the warmest years since modern recordkeeping began in 1880. To counteract this, according to the Paris Agreements, humans must reduce emissions by 45% by 2030 and reach net zero by 2050. Unfortunately, despite governments across the world making commitments to reach this goal, they have not made corresponding efforts or financial investments.
Energy is a limiting factor in human development, and today the world needs to invest an estimated $2.4 trillion USD every year in sustainability to avoid a climate disaster. Unfortunately, we are currently investing less than 30% of that value worldwide, and the investment gap is largest in emerging countries because they do not have the resources to fund green energy. Developed markets, on the other hand, have excess liquidity that can be directed towards projects in emerging markets.
Investing in clean energy can be difficult or even impossible for individuals due to the high costs and necessary physical space for these projects. On the other hand, industries can save up to 20% to 40% on their electricity costs by implementing solar energy, and there is still plenty of room for renewable energy sources in the grid, especially in emerging economies. The challenge is that the initial investment costs for renewable energy are usually higher compared to conventional energy sources, which may deter industries or nations from investing in these initiatives due to financial constraints or investment priorities.
This quandary is also known as the energy trilemma, which means finding the balance between security, affordability, and sustainability in energy generation processes. The development of clean energy generation Projects usually requires giving up one of these three components, as reliable clean energy sources require expensive additional infrastructure such as utility-scale energy storage solutions. Therefore, in order to make clean energy generation processes secure and sustainable, a large investment capacity is required.
One way to reduce this 2.4 trillion dollar gap and help achieve the international goal of limiting global warming to 1.5°C by 2030 is by creating a financial ecosystem centered around clean energy and incentivizing retail investors from all over the world to participate. This is possible because not only do clean energy Projects make a great contribution to solving the climate issue, they are also profitable.
How will decentralized ownership solve the climate crisis?
In order to solve the climate crisis, the world still needs the remaining 70% in sustainability-related investments to fill the climate investment gap. Unergy believes that the most effective way to solve it is to empower people around the world to act on climate change by investing in sustainable assets with decentralized ownership. Empowering all people to invest and profit from clean energy could generate a lot more than $1.7 trillion per year USD in clean energy assets, since the wealth of the world’s entire adult population is over $500 trillion USD, and the yearly net income totals $122 trillion. We believe that the decentralization and democratization of the access to clean energy investments is crucial for this purpose, and that the energy transition the world needs will only be possible if barriers of financing, technical expertise, and capital are broken.
Decentralized ownership of clean energy assets brings new opportunities for trust, transparency, and access to this kind of investments. It also creates a pathway for more efficient capital allocation and fostering collaboration. This leverages Blockchain technology to facilitate scalable transactions and ownership of assets, efficiently integrating multiple participants into the energy transition.
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