High interest rates threaten rollout of green economy: Wood Mackenzie report

Renewable energy companies in Canada are feeling the pinch of higher interest rates, which a new report says could make the net-zero transition more costly and difficult.

Published Thursday by global consultancy Wood Mackenzie, the report says renewable energy and emerging technologies like carbon capture and storage are vulnerable to high interest rates — especially when compared to more traditional sectors such as oil and gas.

"The higher cost of borrowing affects the energy and natural resources sectors unevenly," the report states. "Highly capital intensive and often reliant on subsidies, low-carbon energy and nascent green technologies are most exposed."

The report's findings come as no surprise to those involved in Canada's renewable energy sector.