Guest contribution by Eric Worrall
According to the Australian Financial Review, $ 30 trillion in providing electricity to people who already have electricity is a bigger investment than the internet.
Climate change “greatest investment opportunity since the internet”
It is estimated that it will take an estimated $ 41 trillion to decarbonize the planet so that investors can benefit from a growing megatrend.
Alex Gluyas
Market reporter
01.09.2021 – 5.00 a.m.
A growing chorus in the investment community warns that investors must climate-proof their portfolios or risk missing out on potentially overlooked returns offered by the global transition to a carbon-free economy.
It does so amid an increasing urgency from many foreign governments to implement measures aimed at achieving net zero emissions by 2050. This is to avoid reaching the critical 1.5-degree tipping point that the United Nations Intergovernmental Panel on Climate Change (IPCC) finds at current rates could occur as early as the next decade.
Australia is sticking to the same pledge made in 2015 under then Prime Minister Tony Abbott – to be 26 to 28 percent below 2005 levels by 2030.
The investments needed to decarbonize the planet are valued at more than $ 30 trillion ($ 41.2 trillion), giving investors a rare opportunity to invest in companies involved in the net zero race.
“Climate change is the next big thing and we believe it is the greatest investment opportunity since the Internet,” said James Tsinidis, portfolio manager at Munro Partners.
“We are only at the beginning of the next big S-curve, a massive and sustainable, decades-long growth trend.”
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Read more: https://www.afr.com/wealth/personal-finance/climate-change-biggest-investment-opportunity-since-the-internet-20210826-p58m4w
Aside from what I believe to be a suspicious estimate of $ 30 trillion (no mention of mains battery backup storage which, by my calculations, adds at least $ 50 trillion to that number), There seems to be very little evidence that people will accept this level of spending on their energy bills or taxes, for a product to which you already have access.
On the contrary, if you consider the yellow vest protests in Europe, which began in opposition to the French efforts to introduce a climate fuel tax, or surveys that show how few people are willing to pay for climate protection.
The return on investment in renewable energy depends entirely on the whimsy political commitment to fund the boondoggle. As the Spanish government’s retroactive solar tariff cut has shown, sticking to its renewable energy commitments is not high on their priority list when governments run out of money. And there are many reasons to worry that Western governments will run out of money in the next 30 years.
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