Institutional asset manager KBI Global Investors (KBIGI) believes that increasing regulation and advancing technologies is pushing the world to a "tipping point" in energy production and usage.
The Dublin-based firm, which has a track record of responsible investing, chose World Energy Day 2020 to highlight how important it is to push for a global transition to clean energy.
"We are excited by the opportunity set in front of us and believe we have reached a ‘golden age' for Clean Energy", said Colm O'Connor, lead manager on the firm's 20‐year‐old, €200m Energy Solutions Strategy.
We are excited by the opportunity set in front of us and believe we have reached a ‘golden age’ for Clean Energy"
He warned however that countries still have a lot of work to do make this a reality. "If governments are to deliver on their targets around Climate Change and the transition to sustainable energy sources for 2030, 2050 and beyond, they must further accelerate their adoption of Clean Energy," O'Connor said.
KBIGI notes that the world has seen major technological advances in recent years, with wind and solar now the cheapest forms of energy in many parts of the world. "That", said O'Connor, "will drive global growth in installations."
Highlighting the breakthrough seen in other areas of technology such as transportation, where there is a transition from an oil‐ based to an electric‐based light duty vehicle, the Dublin-based firm believes the world is at a "tipping point". "We are very excited about that in the near term, but as we get to the latter part of the decade, it is clear that advances in transportation and our fuel mix will be nothing like enough if we are to achieve our CO2 targets.
"It is encouraging to see policymakers starting to address this through the adoption of hydrogen as an alternative fuel, the big advancement here powered by the falling cost in renewables as a major input into hydrogen production. We must however enact further change and move fast if we are to reach decarbonisation targets in areas like cement, steel and aviation," O'Connor added.
The auto sector's transition towards a more efficient and more electric future will be a particular driver of the KBIGI strategy. The pace of adoption of electric vehicles has picked up significantly and the firm expects the falling costs of batteries as well as increased subsidies to continue to drive it forward.
"We are investing capital, on behalf of our clients, in companies whose core businesses are delivering solutions to address, mitigate and adapt to Climate Change", said O'Connor. "We firmly believe investment can and will make a positive difference to the planet, and the way we live and work both today and into the future."
Observed annually on 22nd October since 2012, WED is celebrated all around the World to raise awareness of the need to rally around the creation and implementation of policies which increase energy efficiency and conserve natural resources; its overarching aim is to demonstrate the impact of the energy choices we make on the environment.
The €750bn EU Green Deal package has Climate Change at its heart, with 30% of the entire package earmarked for climate protection, and a further commitment that all spending must contribute to EU emissions‐ cutting goals. The 2020 World Energy Day celebrations and Conference are timely for KBIGI, which manages a comprehensive suite of Natural Resources strategies.
KBIGI launched its actively managed Energy Solutions strategy in the year 2000 - developing specialist expertise in this area and the transition to sustainable or Clean Energy over the years.
See Colm O'Connor, lead manager on the firm's 20‐year‐old, €200m Energy Solutions Strategy, talk about this "tipping point" here.