ESG – the renewables boom is here

An energy transition – gradually substituting fossil fuels with renewables – is happening right now, but the pace is largely dictated by policy makers

The way we consume and produce energy accounts for 72% of greenhouse gas (GHG) emissions and in light of the new IPCC report, we believe it is more important than ever to address the severe consequences of failing to dramatically reduce our dependency of fossil fuels. An energy transition – gradually substituting fossil fuels with renewables – is happening right now, but the pace is largely dictated by policy makers.

 

3 key conclusions from Nordea Research’s ESG report:

 

  • Disruptive forces such as technology, electrification and regulation are likely to have a profound impact on global energy markets.

 

  • We expect the global energy transition to unfold with huge capacity additions of especially solar PV and wind power during the coming decades. Declining costs have shifted these technologies from being negligible niches in energy markets to booming industries, now competing head-to-head with fossil fuels on costs.

 

  • The energy transition has already put downward pressure on coal. Oil is likely next in the long run – the pace largely boils down to policymakers. As the fossil fuel with the lowest carbon footprint, natural gas is well-positioned to bridge the energy transition, making the situation more bright for the offshore industry.

 

Read the full ESG report here

 

Previous Nordea Research reports on ESG:

 

ESG – under the alpha lens

ESG – mass consumption

ESG could be a significant Nordic opportunity

ESG – the economics of a hotter world

ESG – Rested & Ready

ESG – why you cannot afford not to care

 

 

ESG - Research report on Renewables

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