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With the Climate and Energy-focused Inflation Reduction Act expected to be signed by President Joe Biden this week, The Wall Street Journal asked Dealogic to analyze the amount of money being lent to "green" companies and to oil and gas companies. The WSJ concluded that investors aren't ready to give up on fossil fuels.
The data shows that they are pulling back.
Since 2015, when the WSJ/Dealogic data series began, fossil fuel financing has been more or less constant. That should be a concern for oil and gas companies because of low rates and the amount of money that has been flowing into the market.
Investment-grade bond issuance went up in 2020 before going down in 2021. Fossil fuel investment dipped slightly rather than rising with the market.
From 2015 to 2016 bonds and loans for renewable projects and companies went up. They more than doubled their investment in fossil fuels the previous year.
Oil and gas companies are in a close race with renewable companies.
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