Banks also react to the move away from fossil fuels
The focus was already on climate issues in 2020. Renewable energy and clean energy are favored. Banks change their policy for fossil loans
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Some banks have already signaled that fossil fuel financing will be reduced. Some banks even announced a complete phase-out. The thinking behind this is surely that climate-related fiscal or political changes pose risks that the banks want to avoid.
So, the outperformance of clean energy will continue. Because this is where finance can grow. For example, clean energy stocks have significantly outperformed fossil fuel stocks since 2018. So, there could be more money flowing into the clean energy sector from the banks as well.
If we take the Paris climate agreement as an example, many companies, development banks, financial institutions and governments have invested a lot of money in CO2 reduction in the five years or so since it was signed. Nearly $600 billion has been invested. Around 180 countries have joined the agreement, and the USA has returned to the agreement thanks to the new president.
For the field of climate-friendly electromobility, a significant component of climate efforts, raw materials are needed in addition to investments and innovations. Cobalt and lithium, for example, are important for the batteries. And electric vehicles consume significantly more copper in production than "normal" vehicles.
Millennial Lithium - https://www.youtube.com/watch?v=h8Qu1EGWgIE, for example, has top-quality lithium in its Argentinean projects.
Copper (and also gold) are located in Adventus Mining's - https://www.youtube.com/watch?v=tN_tzUT_WcM - projects in Ecuador. There, three copper-gold projects are being advanced together with the partner Salazar Resources.
Current corporate information and press releases from Millennial Lithium (https://www.resource-capital.ch/en/companies/millennial-lithium-corp/) and Adventus Mining (https://www.resource-capital.ch/en/companies/adventus-mining-corp/).
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