Less than a month after Biden took over the White House, Secretary of State John Blinken announced his formal re-entry into the Paris Climate Agreement. In the previous week, millions of people in Texas were hit by "apocalyptic" cold and power outages, resulting in many civilian casualties.
The company's newest product is a new product that has been developed by the company's founder, Mr. Wang, and is now being used by the company's customers.
Marx said that things are universally connected. Behind these events are bonds that we cannot see, pulling things in a given direction. Around the Chinese Lunar New Year, a series of economic reports from the Nihon Keizai Shimbun made the rounds in investment circles. The Japanese journalist made an estimate based on public data from various institutions and universities, and revealed a huge business opportunity: China, the United States, Europe and Japan have all given carbon neutral timetables, and from 2021 to 2050, the four major economies will need to invest a total of about 85 trillion USD to achieve the carbon neutral target on schedule.
Jeremy Rifkin, who proposed the concept of "Third Industrial Revolution", predicted in "Zero Carbon Society": "The carbon bubble will be the biggest economic bubble in human history. The end of fossil energy civilization, the dawn of a new ecological civilization, and a dramatic change in the world political and economic order will occur."
In a report, "Climate Change: Setting off a Business Revolution," the UK Carbon Saving Fund says that nearly half of companies worldwide now see the opportunities presented by the development of a low-carbon economy, and one third are blind to the enormous risks they face. There is an estimated $1 trillion value swing between developing a low-carbon economy and rejecting it. Well-prepared, proactive, forward-thinking companies can hope to increase their enterprise value by 80%, while mis-positioned, old-fashioned companies may face the risk of elimination.
In recent years, the U.S. and EU have launched economic revolutions driven by new energy sources to drive transformational growth in industry, manufacturing and services. One study predicts that between 2015 and 2040, the development of purely electric vehicles in the United States alone could increase economic output by $20 billion per year and create as many as 147,000 jobs.
When green production methods are recognized by the majority of people around the world, it means that the original production methods are facing elimination. Whoever can master the new production method earlier and make new market rules will take the lead in the next era.
01When the wind is moving money
The 53-year-old Zeng Yuqun and 93-year-old Li Ka-shing also ranked with 220 billion yuan in the wealth list, only 10 years after he founded Ningde Times. Times change, the old and new wealth forces are growing. A hundred years of gathering sand into a tower, built a moat high, may be just a dozen years by others to break through the city. In the United States, the market value of NextEra Energy, a large renewable energy company, once exceeded ExxonMobil, while BP, the UK's oil and gas big brother, was surpassed by Ørsted, a Danish power company.
Ørsted's Hornsea One offshore wind farm off the coast of eastern England is now the world's largest offshore wind farm in operation, powered by 174 Siemens Gomez turbines that could provide electricity to 1 million homes. As a former traditional power company, Ørsted used to account for a third of Denmark's total greenhouse gas emissions, and in 2012 he took over as CEO with the slogan "From Black to Green", promoting a fossil fuel-free strategy that has now established him as a global leader in offshore wind power. On the eve of his retirement in 2020, Paulsen announced, "We have completed the transformation of our business into a global renewable energy company."
Hornsea One, the world's largest offshore wind farm
According to plans, around 2030, Ørsted's installed renewable energy capacity will increase to more than 30 million kilowatts, equivalent to 30 nuclear power plants, while reducing CO2 emissions by 98%. This prospect is favored by many capitals, and the company's market capitalization has increased to about $91 billion.
Last December, High Tide Capital threw 15.8 billion RMB at Longi, betting on the PV giant. Longi's stock surged 274.4% in 2020 and has been called the "Maotai of PV". In January 2021, LONGi announced an investment of 18 billion yuan to build a project with an annual output of 15GW of high-efficiency monocrystalline cells and 15GW of high-efficiency photovoltaic modules in Yongle Town, Jinghe New Town, Xi'an New Area, which is expected to achieve an annual output of 40 billion yuan when it reaches full production. Annual output value.
Longi settles in Jinghe New City, Xi'an New Area
The world is sniffing around for money. The investment community has a proper name for responsible investment, ESG, an acronym for environmental, social and corporate governance, which was first proposed by the United Nations Environment Programme in 2004. In the context of the 2020 epidemic, global money invested in ESG still doubled from 2019. As an innovative form of financing, ESG asset management has grown at an annual rate of 25% since 2014 and has become a darling sought after by companies, investors, and even regulators. Today, major global stock exchanges are scrambling to lay out ESG, and BlackRock, the world's largest asset manager, is all set to incorporate ESG factors by the end of 2020.
According to an article in the New York Times, more and more banks are using ESG indicators as an important reference in their lending process. A Morgan Stanley survey shows that nearly 80% of individual investors want to invest in ESG funds for financial returns and positive impact on the environment.
In recent years, the Chinese market has also been actively integrating into the international ESG investment trend, with 51 institutions already signed up and a 50% increase in the total number of sign-ups in 2020 compared to 2019. However, compared to developed countries, ESG investment in China is still in its infancy, with only 1,000 of the more than 3,000 domestic A-share listed companies having issued social responsibility reports, and the quality of the reports varying.
While chasing the windfall, savvy capital does not forget to screen the underlying. In 2018, British asset management giant Legal & GeneralInvestmentManagement (LGIM) partially removed Fuji Heavy Industries' Subaru from its portfolio; Japan's Idemitsu Kogyo was once blacklisted by investors, citing environmental and social responsibility concerns.
Climate change risks are also being taken into account by an increasing number of financial institutions in their risk control considerations. The Bank for International Settlements and the Bank of France cautioned that climate change could trigger the next financial crisis and that many financial assets do not properly take into account the costs of climate change and environmental damage. 2018 saw the first publication of the results of the financial institutions' climate change stress test by ABN AMRO, followed by the Bank of France and the Bank of England, which said they would publish results in 2021 and 2022.
In January 2021, the Riksbank, the Swedish central bank, removed from its list of purchased assets those corporate bonds that do not take environmental considerations into account. In the same period, the ECB purchased bonds that included the extent to which companies achieve climate change measures as an influencing factor for interest rates and redemption amounts. The Bank of Japan will also discuss climate change in its review of financial institutions in fiscal year 2021.
