Overall does the transition plan describe how legacy business lines are going to change, and describe the new business lines that will emerge? The second is whether the company is investing a meaningful amount of capex, because that tells us how serious things are. The first is whether the plan addresses all emissions from legacy business lines and whether actions on the ground are specifically aligned to these objectives or simply ad hoc. But then we need to see a credible transition plan. Seb Henbest: Knowing your emissions and setting some targets are the foundation steps. But what does a credible transition plan look like for you? Whether you are a household or a big multinational company, it’s your technology decisions that are going to make the difference here.Ĩ4% of the companies in this survey said they have a transition plan. And we're only a few years away from the same thing for electric vehicles. Right now, it’s cheaper to build wind or solar generation in many countries than it is to run existing coal and gas-fired power plants, so it’s really a matter of getting more and more of this stuff in the ground. These technologies still need a lot of investment and production scale to get to where they need to be by 2030, so that they can play a big role over the subsequent 20 years to 2050. The second bucket includes technology that aren't yet economic or are still in pilot and development stage - this includes things like hydrogen, synthetic fuels and carbon capture and storage. The challenge for these is to scale up supply chains so you can deploy them fast enough this decade to get on track for net-zero. This includes mature and commercially available clean technology such as wind and solar power, batteries, electric vehicles and heat pumps. The first contains the things you can deploy today. Seb Henbest: You can divide the climate technology we need into two buckets. To what extent are the key technologies for the energy transition available – and are they affordable? Technology featured very strongly in the survey as an enabler for the transition. The push towards decarbonisation is evident everywhere, and if you're not starting to pivot your business in this direction there's a real risk of being left behind. Around 90% of world emissions are now either already covered by a government net zero target, or a target under discussion, and about one third of the largest publicly traded companies now have net zero targets. Seb Henbest: The energy transition is now becoming a central part of business strategy, and how companies look at their future growth trajectories. What are your reflections on that sentiment? I'm not surprised by the results of the survey, and it's a really strong reminder that renewables and the move to zero-carbon and energy security are very closely aligned.ĩ5% of energy companies see transitioning to net zero as important to business growth. And in this case, it is driving more investment into renewables – in fact the first half of 2022 saw a record level of new investment. Yes, there is hardship associated with high prices, but it is a driver of change. We’ve got a rerouting of energy on the supply side and the market is responding to that with high prices. Seb Henbest: The current energy crisis is really an imbalance of supply and demand. One of the most striking findings from the survey is that energy security considerations are actually accelerating the transition for over half of energy companies. We caught up with Seb Henbest, HSBC’s Group Head of Climate Transition, to discuss the key findings.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |