What were the key takeaways from COP28?
David Harrison, manager of the Rathbone Greenbank Global Sustainability fund, gives his reaction ...
What were the key takeaways from COP28?
David Harrison, manager of the Rathbone Greenbank Global Sustainability fund, gives his reaction to COP28 and what it means for his investments.
View the transcript
Expectations going to COP28 were fairly low, with many anticipating a watering down of commitments. Importantly, for the first time, there was clear language to transition away from fossil fuels in order to achieve net zero by 2050. This was not expected, and as such a real positive surprise.
Moreover, the commitment to triple renewable energy capacity by 2030 was also very welcome and will only accelerate investment in these areas. Undoubtedly, we believe this will have a positive impact on companies exposed to the energy transition. For a business like Linda [Plc], which we’ve held in the portfolio since 2018, we expect to see further sustained investment in hydrogen technology. Linde is one of the largest players in hydrogen energy installations and works with customers across multiple industries. It has a proven ability to deliver complex projects and build up a vast knowledge base in the space.
Investment in electricity grid infrastructure remains critical as we transition more to renewable energy, and a company like Schneider Electric will be a key beneficiary in our view. Like Linde, Schneider enjoys long-term relationships with his customers and has invested significantly in the areas such as energy storage, which should see strong demand in the next several years.
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