The turnaround in climate policy announced by the Biden administration is of global significance. Along with China, the US is the biggest climate polluter. Together, the two world powers are responsible for more than 40 percent of global carbon emissions. In addition to re-joining the Paris Climate Agreement, President Biden has announced investments in infrastructure renewal amounting to around USD 2 trillion.
As part of the plan, four million commercial buildings will be upgraded with state-of-the-art, energy-efficient technologies. In addition, investments will be devoted to further electrification based on renewable energy sources. The goal of completely decarbonizing electricity generation by 2035 is particularly ambitious. By 2050, the entire energy supply in the US is to be carbon neutral – on par with Europe and China’s ambitions.
Despite increasing global efforts towards energy efficiency, in the immediate future, energy demand will continue to increase. The two biggest drivers are the unchecked rise in global populations and GDP growth, led by the Asia-Pacific region. With appropriate measures, however, it is entirely possible that the level of global energy consumption will first plateau before reaching a point of slow decline by 2030 (see Figure 1).
But to do this, three measures are required simultaneously: 1) the electrification of fossil-fuel dependent heating and transport sectors, 2) stricter energy efficiency measures for other end-use sectors, and 3) substantial expansion of the share of solar and wind energy in electric power grids.
Despite optimism, our own estimates don’t see us achieving the 1.5°C scenario by 2050 – a scenario that would require complete carbon neutrality. It seems more likely that energy-related carbon emissions will be halved from today’s level to slightly below 20 gigatons per year by 2050 (see Figure 1). Even this, however, will only be possible if the percentage of electricity making up the global energy supply increases from its current share of 20% to 50%. In parallel, the ‘renewable share’ of electricity must rise from its current 30% share to 85%. According to our calculations, this would mean that electricity generation, driven by solar and wind, would have to increase by a factor of about six by 2050 – an entirely realistic scenario.
The transport sector, in particular, has shown the highest growth rates in energy demand. With a share of almost 30% of global energy consumption, and a heavy dependence on oil, it is one of the biggest carbon polluting sectors, driven not only by vehicles but also by air traffic.
The automotive industry is increasingly seeing that its carbon footprint can only be reduced sustainably through comprehensive electrification – encompassing both electric vehicles and the renewably generated electricity that powers them. Some automakers have already formulated self-imposed goals as a means of decarbonizing the automotive value chain starting with vehicle production, continuing through use and maintenance, and ending with vehicle recycling. What started with passenger vehicles will continue to spread to other transport subsectors, such that the entire sector will be electrified sustainably over time.
Hydrogen will also provide storage capacity to complement batteries, particularly in areas with high demands on weight and energy density. This will enable the comprehensive electrification of heavy-duty vehicles, ships and even aircraft (where promising pilot projects have already been announced). Despite its potential for energy storage, hydrogen fuel as an energy source only makes sense if it is produced in a carbon-neutral manner— only ‘green hydrogen’ meets that criteria. It is produced in an electrolyzer using a carbon-free process consisting of water, electrolysis and renewable electricity. However, current electrolyzer units are unable to produce the volumes of hydrogen needed for large-scale, industrial demand; broader market penetration is still years away
As with batteries, advances in electrolyzer technologies will surmount present barriers to make green hydrogen competitive (relative to current carbon-based hydrogen production methods) by 2030 at the latest. An abundance of green hydrogen would enable the large-volume and seasonal storage of renewable energy which could then be used not only to decarbonize transportation, but also other energy-dependent industrial processes (like heat generation for buildings, fertilizer for crops, semiconductor manufacturing, and steel production).
With the election of Joe Biden, the international community appears united in its quest for a sustainable global energy economy. With firm government commitments worldwide, momentum is accelerating towards a cost-effective and sustainable energy transition that includes low-cost renewable energy, smart energy grids, adaptable energy storage, and energy-efficient technologies that help reduce energy consumption.
With the world united in the fight against climate change, the global movement towards a sustainable energy supply is gaining considerable momentum
The future of energy is renewable, electric and efficient providing abundant investment opportunities across a diverse set of industry value chains. The RobecoSAM Smart Energy and Smart Mobility strategies offer investors exposure to these exciting trends in ‘decarbonization’ and ‘sustainable mobility’ that are driving us towards a clean energy future!
当資料は情報提供を目的として、Robeco Institutional Asset Management B.V.が作成した英文資料、もしくはその英文資料をロベコ・ジャパン株式会社が翻訳したものです。資料中の個別の金融商品の売買の勧誘や推奨等を目的とするものではありません。記載された情報は十分信頼できるものであると考えておりますが、その正確性、完全性を保証するものではありません。意見や見通しはあくまで作成日における弊社の判断に基づくものであり、今後予告なしに変更されることがあります。運用状況、市場動向、意見等は、過去の一時点あるいは過去の一定期間についてのものであり、過去の実績は将来の運用成果を保証または示唆するものではありません。また、記載された投資方針・戦略等は全ての投資家の皆様に適合するとは限りません。当資料は法律、税務、会計面での助言の提供を意図するものではありません。
商号等： ロベコ・ジャパン株式会社 金融商品取引業者 関東財務局長（金商）第２７８０号
加入協会： 一般社団法人 日本投資顧問業協会