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.
Previous Nordea Research reports on ESG:
The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Markets as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.
The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.
Nordea Markets is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.
The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Markets.