The Covid-19 pandemic brought challenges for BRICS economies and accelerated a trend that has been consolidated for some years. Green Economy and Renewable Energy are generators of structural transformations for urban, industrial and technological development for member countries worldwide.
Growth in demand for sustainable investments has an important role in economic recovery, investors are looking for companies that adopt better social practices and add value to their shareholders. SDG and renewable sources of energy has high impacts of development in green transition, climatic finance and international cooperation. As it shows the Figure 1 (IEA, 2020) the investment in clean energy and efficiency increased almost 10% in the period 2015-2020.
Figure 1: Global investment in clean energy, efficiency and share of total investments, 2015-2020.
Adapted IEA, 2020.
According to Bloomberg (2020), Green Power is set to draw around $11 trillion of investment in the coming decades, it shows good opportunities for international cooperation and technological development between the BRICS countries. Incentive regulations to encourage the investment in renewable energy can be created and implemented together; strategic partnership between governments can reduce the risks for private investors and take the internal markets for a higher level (PAGE, 2016).
The transition demands a lot of equipment and services, so it may contribute for local employment, the energy-transition would add 5.5 million more jobs by 2023 and in long-term would result in 100 million people employed in the energy sector by 2030 (IRENA, 2020b). The exchange of technology is the opportunity for the green recovery and transformation in the BRICS economies.
Clean Energy shares showed more resilience than other assets in the beginning of Covid crisis, green bonds are a great opportunity to attract institutional investors for renewable energy sector, this is a good option to diversification and long-term returns following the global trends. SDG is the future of investment, the decarbonization will bring new possibilities and development for Emerging Markets in the coming years.
Accelerate the energy transition and create more effective policy instruments to incentive green investment are the first steps to start the big change, climate goals and finances can be combined for the green shift. International Cooperation will be essential to improve the competitiveness in internal markets, mitigate risks and develop new technologies. Therefore, the changes came to stay and brought new opportunities, the investment in Renewable Energy and SDG’s have been having important progress to build a green future and bring development for BRICS countries.