SNAPSHOT2 min read

Infographic: How the energy transition is starting to accelerate

The energy transition, the shift from fossil fuels to sustainable energy, is accelerating as the world seeks to halt climate change and consumers switch to electric vehicles.

25/01/2022
wind-turbines-IHB

Authors

Mark Lacey
Head of Global Resource Equities
Alexander Monk
Portfolio Manager, Global Resource Equities

The current energy transition – the shift from fossil fuels such as oil and coal to sustainable energy sources such as wind and solar – is starting to accelerate. From just 1% of the global energy mix in 1950, renewable energy is now set to account for 50% of our energy needs by 2040.

Demand for renewable power is growing fast as companies commit to carbon net zero goals. Awareness of the damaging impact of greenhouse gas emissions has also increased in recent years, and the issue of climate change has now risen to the top of the global news agenda.

Many countries around the world have committed to target dates for banning the sale of polluting petrol and diesel engine vehicles in a bid to slow global warming. Norway will be the first country to ban the sale of new internal combustion engine (ICE) vehicles in 2025, with consumers only able to buy new electric vehicles (EVs) after that date.

Demand for EVs is growing as new models with longer-range batteries and cheaper price tags are released onto the market and consumers switch to greener modes of transport. However, sales of EVs still account for a small amount of all cars sold. In the UK, for example, EVs accounted for 11% of total passenger vehicle sales in 2020. This will have to rise to 100% by 2030 if the UK’s target to ban sales of new ICE vehicles by 2030 is to be met.

The infographic below gives a sense of the immense scale of the energy transition and the opportunities the change could offer investors.

ET-infographic

Issued in the Channel Islands by Cazenove Capital which is part of the Schroders Group and is a trading name of Schroders (C.I.) Limited, licensed and regulated by the Guernsey Financial Services Commission for banking and investment business; and regulated by the Jersey Financial Services Commission. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

 

Authors

Mark Lacey
Head of Global Resource Equities
Alexander Monk
Portfolio Manager, Global Resource Equities

Topics

Snapshot
Equities
Alexander Monk
Mark Lacey
Alpha Equity
Sustainability
Environmental
ESG
Global
Energy transition
Thematics
Global Transformation

Cazenove Capital is a trading name of Schroders (C.I.) Ltd which is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 2020 and the Protection of Investors (Bailiwick of Guernsey) Law 2020, as amended in the conduct of banking and investment business. Registered address at Regency Court, Glategny Esplanade, St. Peter Port, Guernsey GY1 3UF, (No.24546) . Schroders (C.I.) Limited, Jersey Branch is regulated by the Jersey Financial Services Commission in the conduct of investment business. Registered address at 40 Esplanade, St. Helier, Jersey JE2 3QB, (No.31076).

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