Goldman Sachs will pump $40bn into the renewable energy sector over the next decade to tap into what it sees as one of the biggest profit opportunities since the rise of the emergence of the emerging markets.
In a major boost of confidence to the industry which has been rocked by a pullback of government support around the globe and seen the shares of its listed companies fall, Goldman said it predicts demand for alternative energy sources to grow alongside increasing demand for power around the world.
According to a report in Reuters, Goldman will use both its own money and that of clients to finance deals, with further details to be released at its annual meeting today.
The investment bank is not new to the sector and in 2011 aided in the financing of $4.8bn in clean technology companies globally, according to Reuters.
During the year and into 2012 the bank has been involved in the underwriting of initial public offerings in the sector, including that of Doughty Hanson backed water purification company Norit, which is due to list, and is rumoured to buying the water arm of environmental business Veolia.