In this episode of ESG360, we discuss solar power with Vinod Mukani, head of the Infrastructure and Power Business at Nomura. Solar energy has been making great strides in recent years as pressure builds on countries to reach net zero emissions goals. The latest available data from the International Renewable Energy Agency shows that solar capacity increased 22% to 127 gigawatts in 2020 compared to 2019. It’s projected to reach $223 billion by 2026.

Nomura recently acted on an innovative solar and battery storage financing for AMP Energy, a renewables specialist.  The deal highlights 3 key trends and challenges. Firstly, the maturity and stability of solar photovoltaic panels has made them among the cheapest forms of energy production. Secondly, the renewables markets is global but jurisdictional nuances make financing a challenge, in particular the way renewables are subsidized vary between countries.  Finally, there’s great demand for tailored financing whether it’s for distributed solar that’s produced using rooftop systems or community solar projects that power multiple properties from a central source.

In this episode of ESG360, we discuss green taxonomies with Andrew Bowley, Wholesale Governance Officer at Nomura. In a controversial move, the EU has allowed natural gas and nuclear into its green taxonomy. The decision has caused uproar among climate activists who accuse policy-makers of greenwashing and undermining efforts to accelerate the green transition. We also discuss social bonds with Nomura’s Mark Yeomans, a specialist in ESG debt. Asia’s social bond market has been rising rapidly amid a flurry of recent deals including a health bond for the Asian Development Bank fueling optimism in the region after the setback of the Covid-19 pandemic.