What is the impact of the "energy revolution" under carbon neutrality?
Recently, extreme weather has become more and more frequent. What can we do for the environment? In a low-carbon economy, what is worth paying attention to? This issue of "Responsible Investment Monthly Reading Conference" will take you to the new book published in 2021: "Carbon Neutral Economics".
Under carbon neutrality, understand new energy
Under carbon neutrality, is the energy field worthy of attention? I wonder if you have heard this metaphor: the highest level of human technology is "boiling water". Although it's a joke, the energy field does embody revolutionary technological advancements, from steam engines to nuclear fusion. How we will "fancy boiling water" in the future may bring about the next change from industry to lifestyle.
We might as well understand the energy economy from a carbon neutral perspective. According to Carbon Neutral Economics, energy activities generate nearly 90% of my country's carbon emissions. The reason why energy is important is not only related to people's livelihood, but also the foundation of industry. In the past, traditional fossil energy has shaped the energy and industrial systems of various countries. In recent years, from the changes in my country's energy production structure, we can see the trend of turning to green energy.
Falling costs and technological innovations will be the catalysts for carbon neutrality in electricity. "Carbon Neutral Economics" pointed out: From 2010 to 2020, with the advancement of technology, the costs of wind power and photovoltaic power generation have dropped by 34% and 89% respectively; the costs of coal, oil and natural gas have fluctuated and stabilized in recent years, while traditional energy is relatively The cost advantage of renewable energy may continue to weaken in the future.
However, the road to carbon neutrality in energy is not easy. For example, renewable electricity has problems of stability and reliability. A recent example occurred in Australia - on June 15 this year, the Australian electricity spot market announced a "shutdown", which was also the first time it suspends electricity market trading nationwide.
what can we do?
Making the earth a better place requires the joint efforts of the whole society. What can ordinary people do? The Economics of Carbon Neutrality suggests the following:
1. Eliminate waste: reduce food waste, so that the water, land, energy and carbon emissions needed to produce these diets are not consumed for no reason. Reasonable planning for food, clothing, housing and transportation can contribute to carbon neutrality.
2. Green home: Consider building energy-saving renovations, using more energy-efficient home appliances, drying instead of drying, and adjusting the temperature of air conditioners.
3. Pay attention to ESG investment: As mentioned above, choosing ESG investment, similar to "voting with your feet", can play the role of financial guidance in resource allocation. In addition, ESG investment is meaningful and beneficial in capturing green development opportunities, avoiding risks in areas such as the environment, and fulfilling carbon neutrality obligations.
Liu Yifeng, ESG researcher at Industrial Securities Global Fund, pointed out: "The concept of ESG investment coincides with long-term investment. If a company can use environmental resources more efficiently, treat and empower stakeholders such as employees and shareholders, and build a more robust The corporate governance structure can often improve the ESG performance while promoting the long-term healthy development of the company, and have the opportunity to bring longer-term returns to investors.”