• Atmospheric CO2 /Parts per Million /Annual Averages /Data Source: noaa.gov

  • 1980338.91ppm

  • 1981340.11ppm

  • 1982340.86ppm

  • 1983342.53ppm

  • 1984344.07ppm

  • 1985345.54ppm

  • 1986346.97ppm

  • 1987348.68ppm

  • 1988351.16ppm

  • 1989352.78ppm

  • 1990354.05ppm

  • 1991355.39ppm

  • 1992356.1ppm

  • 1993356.83ppm

  • 1994358.33ppm

  • 1995360.18ppm

  • 1996361.93ppm

  • 1997363.04ppm

  • 1998365.7ppm

  • 1999367.8ppm

  • 2000368.97ppm

  • 2001370.57ppm

  • 2002372.59ppm

  • 2003375.14ppm

  • 2004376.96ppm

  • 2005378.97ppm

  • 2006381.13ppm

  • 2007382.9ppm

  • 2008385.01ppm

  • 2009386.5ppm

  • 2010388.76ppm

  • 2011390.63ppm

  • 2012392.65ppm

  • 2013395.39ppm

  • 2014397.34ppm

  • 2015399.65ppm

  • 2016403.09ppm

  • 2017405.22ppm

  • 2018407.62ppm

  • 2019410.07ppm

  • 2020412.44ppm

  • 2021414.72ppm

  • 2022418.56ppm

  • 2023421.08ppm

News & Views

Transforming the transport sector

Following Mission Possible Partnership’s guidance on transport and net zero, dozens of companies have signed onto transition strategies to provide a path to decarbonisation.

Content Tags: Energy  Transport  Emissions 

Representing 10% of global greenhouse gas emissions, aviation, shipping and trucking share multiple common characteristics. Research from Mission Possible Partnership (MPP) concludes they have high expected demand growth rates, expensive long-life assets and significant demands on new energy systems.

It is for these reasons, MPP, an alliance of climate leaders, is setting out economic milestones for aviation, shipping and trucking. These have been endorsed by dozens of companies – highlighting that there are opportunities in transport for net-zero investors.

Trucking and cars

The transport industry is working towards creating sustainable fuels and is becoming more climate-friendly in the way that cars are manufactured. According to Gurpreet Gujral, adviser to the Atrato Onsite Energy Trust, there are many different investment options out there for net-zero investors, which sometimes have very different risk-reward profiles.

Gujral says: “We are installing roughly 37,000 solar panels that will be connected directly to the Nissan factory [in Sunderland in the UK]. This is not only an important investment for our investors, but also an important project for Nissan as it enables it to consume a substantial amount of energy directly from a solar PV system, which will primarily be used for manufacturing electric vehicles.”

In the trucking space, there are a number of commercially viable zero-emissions medium- and heavy-duty trucks available on the market, with more on the way. Neaaz Mozumder, investment stewardship analyst at LGIM America, explains: “These can be superior to existing options, particularly in regards to maintenance, acceleration, etc. The economics are getting there as well, with zero-emissions trucks becoming more cost-competitive with scale and the passage of time.”

For example, the UK government is set to inject over £200m to launch the world’s largest fleet of zero-emission heavy goods vehicles to accelerate plans to decarbonise road freight. There is clearly a need for disruption in this sector. With trucking demand in China, Europe, India, and the United States expected to more than double by 2050, MPP forecasts a need for ten million zero-emissions trucks by 2030 with between 1.8 and 2.5 million EV chargers and between 1,000 and 19,000 hydrogen stations.

Aviation

Investors are increasingly focusing on aviation due to its well-known environmental impact, but they must consider the technological limitations and industry fragmentation in this space.

Mozumder explains: “Some airlines are spending R&D dollars and/or entering partnership to work on new technologies, but it’ll all take time. You have to consider the nuances of the different operating models, such as whether they operate primarily short-haul or long-haul. But progress is being made.”

Meanwhile, Charles Radclyffe, founder and CEO of EthicsGrade, a ratings agency specialising in understanding the ESG risks of technology companies, highlights that it is still perceived by many as quite glamorous to fly, even though the reality is very different.

Radclyffe elaborates: “Therefore picking on the rich and famous for their private jets is seen as fair game. That's why big gestures such as that of the 16-year-old Greta Thunberg sailing from Plymouth to New York for the UN climate conference resonated with so many.”

This is an area receiving state recognition, however.

For instance, the UK government is also investing in sustainable aviation and is set to deliver the world’s first net-zero emissions transatlantic flight by 2023. It will also introduce a sustainable aviation fuel mandate equivalent to at least 10% of jet fuel to be made from sustainable sources by 2030.

Encouragingly, major names in aviation have already provided a shared vision for the industry’s low-carbon future – including Airbus, American Airlines, Air France-KLM and easyjet. Despite this consensus view, MPP calculates that sustainable aviation fuel will require significantly more investment – ramping up this pipeline by a factor of 5-6 in the next eight years.

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Picking on the rich and famous for their private jets is seen as fair game. That's why big gestures such as Greta Thunberg sailing from Plymouth to New York for the UN climate conference resonated with so many.

bxs-quote-alt-right
Charles Radclyffe, founder and CEO, EthicsGrade

Shipping

The shipping industry is responsible for around 940 million tonnes of CO2 annually, which is at least 2.5% of the world’s total CO2 emissions, according to UK Research and Innovation. But there are investment options being opened up here, with shipping asset owners realising the net-zero pressures this form of transport is now under.

Like aviation, the focus is once more on sustainable fuel sources. Igneo Infrastructure Partners, the infrastructure investment business of First Sentier Investors, has engaged with Scandlines, a company that has installed hybrid engines on several of its vessels which combine diesel and electric power. Sophie Durham, head of ESG at Igneo, suggests there is a huge opportunity for net-zero investors in this area.

Durham comments: “This project has a positive return on investment as well as reducing carbon emissions.”

Eric Pedersen, head of responsible investments at Nordea Asset Management, suggests there are many ESG elements an asset manager must consider in the maritime space.

“While it is likely to take many more years before shipping experiences an automotive-like sustainability revolution, there are still many courses ESG investors can chart to promote environmental and societal advances in this crucial global industry,” Pedersen concludes.

Content Tags: Energy  Transport  Emissions 

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