CLIC™ conversations: the energy revolution

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CLIC™ conversations: the energy revolution

Paul Udall - Portfolio Manager, Global Equities

Paul Udall

Portfolio Manager, Global Equities
Kristina Church - Head of CLIC™ (Sustainable) Solutions

Kristina Church

Head of CLIC™ (Sustainable) Solutions

Climate change policies and efforts to limit global warming to well-below 2°C are critically dependent on the decarbonisation of our energy system. The challenge – as well as the investment required – is vast.

In the second episode of our six-part series on the climate transition, we examine the energy sector and the extent of change required, and ask what do investors need to know about how the energy revolution is unfolding.  

“From an investor standpoint, over the past 20 years, the energy sector has been under a lot of focus because the bulk of emissions come from electricity and heat production. Therefore, the most important goal over the past 20 years has been to reduce the CO2 intensity of electricity production. The good thing about this is that it has been largely successful”, says Portfolio Manager Paul Udall.

Udall also talks to Head of CLIC™ Solutions Kristina Church about how we typically approach this sector as investors, which policies are accelerating the transition to net zero, and the growing popularity of hydrogen power.  

“[Hydrogen] has been one of the big trends over the past 12 months. What we have seen is - like with renewable energy - a very strong policy response, recognising that hydrogen plays a very important role in decarbonising industry”, explains Udall.

“There are lots of different pieces to this puzzle, but the direction of travel with hydrogen has become very positive in the last couple of years, mainly due to this rapid decrease in the cost of renewable power.”

 

To find out more about the challenges and opportunities presented by the energy revolution, listen to the full episode below.

Top three considerations for investors
 

  • We have witnessed some real progress in terms of the climate transition, guided by strong policy responses.
     
  • The transition to net zero presents a number of exciting growth opportunities for companies and investors.
     
  • Investors have a critical role to play in maintaining this positive momentum. Investors are strongly encouraged to engage whenever possible on this front.  

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