As China joins “ Carbon neutrality ” In the wake of this trend, coupled with substantial government subsidies for the policy following Biden’s inauguration, the investment community believes that clean energy will become a key growth area over the next four decades. The market anticipates that global green investments will continue to expand. According to Morningstar data, last year, global funds aligned with environmental, social, and governance (ESG) principles attracted... 3500 hundreds of millions of dollars, while 2019 Only for the year 1650 hundred million dollars.
 

The global carbon reduction process is accelerating. Climate scientists are calling on countries to... 2050 After achieving carbon neutrality this year, a continuous race to reduce emissions has begun.

As of now, there are already... 127 made by a country “ Carbon neutrality ” Commitment. China last year 9 The month also proposed that efforts should be made to peak carbon dioxide emissions by... 2030 Reach the peak before the new year—make every effort to achieve it. 2060 Achieved before the new year “ Carbon neutrality ” An organization believes that, “ Carbon neutrality ” Will constitute the future global 40 A major shift in annual investment.

What does carbon neutrality really mean? ?

Human emissions of greenhouse gases have significantly raised the global average temperature. Among all greenhouse gas emissions, carbon dioxide accounts for roughly two-thirds. Therefore, controlling carbon dioxide emissions has become a key factor in curbing global warming.

“ Carbon neutrality ” It refers to offsetting one's own carbon dioxide emissions through measures such as afforestation and energy conservation and emission reduction, thereby achieving carbon neutrality. “ Zero emissions ” Carbon neutrality means that, from the smallest scale—such as households and individuals—to the largest—such as companies and nations—the amount of carbon dioxide emitted into the atmosphere is exactly offset by the emissions you neutralize through other means. And an earlier goal that must be achieved before attaining carbon neutrality is: “ Carbon peaking ” This refers to a situation where carbon emissions enter a plateau phase and fluctuate within a certain range, after which carbon emissions gradually stabilize and begin to decline steadily, ultimately achieving carbon neutrality.

2015 In the Paris Agreement of the year, regarding 2020 After the Chinese New Year, global efforts to tackle climate change have made corresponding arrangements, clearly setting the goal of limiting global warming to... 2 Even striving to keep it under control. 1.5 The goal, near 200 The contracting parties jointly signed the agreement.

European and American countries are at the forefront.

Carbon peaking is closely linked to a country's industrialization process. EU countries achieved carbon peaking in the 1970s and 1980s, while the United States and Japan reached their carbon peaks around... 2005 Carbon peaking was achieved around that time. Most developed countries have already completed industrialization and can ensure that emissions continue to decline after peaking.

Looking at the countries that have currently announced their carbon neutrality targets, Nordic nations such as Sweden, Iceland, and Finland are leading the way—they will achieve this goal ahead of others. 2050 To achieve this goal within the year, countries including the European Union, the United States, Japan, and Canada have all announced that they will... 2050 Achieve carbon neutrality by [year]. EU leaders agreed to raise the EU’s short-term emissions reduction target from... 40% Increase to 2030 Annual emission reduction 55% 。

Currently, the United States accounts for a share of global carbon dioxide emissions that is... 15% is the world’s second-largest carbon emitter. Biden is a strong advocate for addressing global warming in U.S. politics, and since taking office, the United States has rejoined the Paris Agreement. In his “Clean Energy Revolution and Environmental Justice Plan,” Biden aims to ensure that the United States... 2035 Achieve carbon-free power generation by the end of the year, in... 2050 Achieve carbon neutrality by the year [year], realizing... 100% A clean energy economy.

Under this plan, Biden intends to invest over the next ten years. 4000 Hundreds of millions of dollars are being allocated to research and innovation in energy and climate, as well as to the development of clean-energy infrastructure. As China, the European Union, and the United States—the world’s three largest economies—strengthen their carbon-reduction policies, the global carbon-reduction process will further accelerate.

Means to achieve carbon neutrality

Achieving carbon neutrality has 3 Methods: Emission reduction, substitution, and capture and removal. Emission reduction primarily involves cutting down on the consumption of conventional fossil fuels and the resulting carbon emissions. Fossil fuels mainly include crude oil, coal, natural gas, and others.

The two major sources of emission reductions are power generation and automotive propulsion, as well as other various activities aimed at reducing the use of conventional fossil fuels in production or consumption. For example, by recycling scrap metal in electric arc furnaces instead of smelting raw iron ore in blast furnaces, the United States has reduced its steel scrap recycling by as much as... 80% emissions. China has already planned to increase the proportion of this recycled steel to... in the next five years. 10% Increase to 20%。

Alternative approaches primarily involve harnessing new energy sources, including increasing the share of clean energy—such as wind power, hydropower, and nuclear power—in total energy consumption. For example, China will continue to promote the construction of coastal nuclear power plants as a strong complement to other new energy sources. Vigorously developing clean transportation vehicles is also an alternative approach; for instance, most European countries anticipate that by... 2030 Completely phase out traditional fuel-powered vehicles by the year.

In addition to wind, hydro, and nuclear energy—currently in use—industry experts predict that hydrogen could become a new global energy source, much like oil and natural gas. The industry is at a critical juncture and will rapidly expand. 11 A trillion-dollar market.

In addition to reducing emissions, there is another approach that can directly intervene in the carbon dioxide already present in the atmosphere. This technology operates in two ways; the first is known as... “ Carbon capture ” which involves capturing carbon dioxide from the chimneys of factories and power plants to prevent its release into the atmosphere. The second approach is... “ Carbon removal — We can capture carbon dioxide from the air around us. For example, widespread reforestation efforts are increasing forest cover, and researchers are planning to leverage agricultural cultivation techniques to enhance carbon sequestration in soils, develop plants that can absorb even more CO₂, and lock up atmospheric CO₂ by weathering rocks in specific ways.

Now, some Nordic countries, such as Iceland, have developed new technologies that can convert carbon dioxide into rock at lower costs. “ Carbon removal ” This has become an area of great interest to forward-looking investors, such as Bill. · Both Gates and Musk have invested in related fields.

The industry has a wide-ranging global impact.

Carbon neutrality is impacting every aspect of current human life. New-energy vehicles have become one of the key measures to replace fossil fuels and have achieved leapfrog development worldwide in recent years.

Global new-energy vehicles have established a fairly clear development path in terms of battery-electric vehicles, plug-in hybrid electric vehicles, and fuel-cell vehicles. Last year, global sales of new-energy vehicles stabilized at... 310 Ten thousand vehicles, year-on-year growth 41% Meanwhile, overall automobile market sales declined year-on-year. 14%。2020 In the year, driven by massive subsidies, Europe’s sales of new-energy passenger vehicles reached... 136.7 Ten thousand vehicles, a significant year-on-year increase. 142% and replace China to become the world’s newest and largest new-energy vehicle market. 2020 Year, sold in China 130 Ten thousand new-energy vehicles, accounting for... 5.6% market share.

China is one of the world’s fastest-growing markets for new-energy vehicles, and plans to— 2025 The share of new energy vehicles in the market will increase to a certain percentage of new car sales this year. 20%。

Not only are new-energy passenger vehicles experiencing a global surge in popularity, but many leading companies in the transportation industry have also begun to ramp up their use of new-energy vehicles and pledged to achieve carbon neutrality as soon as possible. Recently, FedEx of the United States committed to— 2040 Achieve carbon neutrality by the end of the year. The company commits to an initial investment. 20 Billions of dollars launched, exceeding 18 10,000 electric delivery vehicles, and invest 1 A new Yale University Natural Carbon Capture Center has been established with an investment of hundreds of millions of dollars.

From a global perspective, industries such as energy and metallurgy have the highest proportion of fossil fuel usage and therefore face more significant challenges and opportunities. These industries will in the future be required to undergo integration and consolidation, as well as improve utilization efficiency. Among these trends, energy transmission and energy storage represent one of the key strategic directions for achieving carbon neutrality. Given the pronounced seasonality of wind energy and the fact that solar power can only generate electricity during daylight hours, renewable energy sources place higher demands on the power grid. According to institutional forecasts, by... 2050 This year, the global power grid will grow. 4800 Ten thousand kilometers. That’s enough to circle the equator nearly... 1200 Circle.

Carbon neutrality has had an unprecedented impact on the commodity markets—so much so that it has even triggered this so-called round. “ Supercycle ” is a major contributing factor. According to data from Citigroup Global Markets, demand from renewable energy generation, battery storage, electric vehicles, charging stations, and related grid infrastructure accounts for roughly one-fifth of total copper consumption. As governments around the world strive to achieve ambitious net-zero emissions targets over the coming decades, this implies an increased need for clean electricity—such as the expansion of power generation capacity required in the United States. 28.7 With a trillion-dollar power grid, this transition could require vast amounts of copper.

Currently, industries with relatively high greenhouse gas emissions also include consumer goods, real estate, technology, and telecommunications operations. Many tech companies’ data centers consume enormous amounts of electricity, resulting in a significant carbon footprint. Most tech companies are at the forefront of driving change compared to traditional industries. Amazon and General Motors have already committed to... 2040 Achieve carbon neutrality by [year]. Apple’s goal is to... 2030 achieve carbon neutrality by [year], while Google has announced that since [date]... 2007 Carbon neutrality has been achieved since [year].

Investing in greening has become a global trend.

As countries commit to reducing greenhouse gas emissions, spending on environmental, social, and public services is set to rise sharply, and the market anticipates that global green investment will continue to grow. According to Morningstar data, global funds aligned with environmental, social, and governance principles attracted nearly... last year. 3500 hundreds of millions of dollars, while 2019 Year for 1650 hundred million dollars.

The huge market demand has encouraged investment. “ Turn green ” Bloomberg NEF The data shows that, 2020 This year, spending by businesses, governments, and households on renewable energy and electric vehicles exceeded... 5000 hundred million dollars.

In the pursuit of capital, Morgan Stanley discovered that a basket of... “ Green ” The stock's price-to-earnings ratio compared to 2020 Annual average increase 24 percentage points, while comparable stocks in the industry rose by only 2 percentage points. By global 30 The S&P Global Clean Energy Index, composed of the largest companies in the clean energy sector, has nearly doubled in market capitalization over the past year.

Many green energy companies are receiving unprecedented attention. Denmark’s power company Ørsted, one of the leaders in the offshore wind market, has seen its stock price... 3 Having nearly doubled in value this year, Ørsted said that U.S. states’ regulations requiring the development of offshore wind farms are paving the way for bright prospects for the company.

Hydrogen fuel company Plug Power The stock price has been... 2021 Up nearly since the beginning of the year 50% , bringing its market capitalization to 250 Billions of dollars. Bullish investors believe that if the world truly shifts to hydrogen fuel for core economic activities such as shipping, companies will reap substantial benefits.