An accelerated shift in government policy, corporate policy and capital deployment strategy are precipitating enormous investment that is driving global growth in climate finance to an estimated $9 trillion by 2030, according to a new study from the Equipment Leasing & Finance Foundation. The new study, “Climate Finance: A Massive Commercial Opportunity for Equipment Finance,” released by the ELFF provides an overview of the climate finance opportunity by industry and asset type, reviews the current nature of financing by equipment finance companies and provides a roadmap for industry participants to chart their course in climate finance.

The comprehensive study was commissioned by the ELFF and prepared by The Alta Group. It utilizes a multipronged approach, including a compilation of available market data, a survey of members of the Equipment Leasing and Finance Association’s Climate Finance Working Group and in-depth interviews with participants in climate finance across the equipment finance industry.

Among the in-depth research and analysis in the study are:

• An executive summary intended to be a stand-alone document summarizing all the content in the paper
• An overview of the global climate finance market
• A review of participation in climate finance across the industry today and examination of key segments, including solar finance, energy efficiency, electric vehicles, energy storage and green hydrogen
• Information and resources to aid in the analysis of market considerations
• Asset management and risk considerations
• Current headwinds and tailwinds in climate finance

“Taking advantage of the sizable opportunities of providing climate finance involves the application of best practices and the mitigation of both traditional and emerging risks,” Valerie Gerard, research committee chair of the ELFF and co-CEO of The Alta Group, said. “This study aims to accelerate the equipment finance industry’s understanding of climate finance, and offers a roadmap for equipment finance companies to develop their own strategic and tactical plans toward successfully participating in this market.”

Earlier this year, Monitor spoke with Patricia Voorhees of The Alta Group, who shared her thoughts on the current relationship between the equipment leasing industry and climate finance, how to address some of the perceived challenges of financing such assets, and the incentives and opportunities spurring action across the sector.