According to Net zero tracker statistics, more than 130 countries around the world have declared net zero emissions and net zero carbon emissions worldwide by 2050. Although each country has a different timetable for achieving net zero carbon emissions, the use of green electricity will be an inevitable trend. In its latest global risk report, the World Economic Forum pointed out that three of the top ten most serious future risks in the world are related to climate. Therefore, an inevitable challenge for the world is to avoid extreme weather like in the movie "The Day After Tomorrow."
The investment team of Yuanta’s Global Utility Fund pointed out that the key to mitigating climate risk is to avoid global warming first, so investing in the construction of renewable energy installations will be an urgent matter. According to the International Renewable Energy Agency (IRENA), to achieve the ultimate goal of net-zero carbon emissions in electricity generation by 2050, global renewable energy installations must reach 27,700GW (million kilns). Although volume has doubled in the past 10 years of renewable energy installations, the ultimate goal is still far away.
Therefore, led by developed nations, countries have launched major policies to develop global renewable energy. For example, US President Biden's renewable energy policy means to achieve zero carbon emissions from all electricity by 2035, stop providing new funding to carbon-intensive power plants such as overseas coal-fired power plants, and transition utilities from fossil fuel generation to clean energy generation.
Recently, Taiwan's leading plastic chemical company issued a conservative view on this year's industry boom. According to statistics, more than 1,500 investment institutions around the world have successively announced that they will withdraw from fossil fuel companies, with an estimated total asset size of US$40 trillion, indicating that institutional investors have responded to net zero emissions. Hopefully, this divestment action and the negotiation process can pressure companies to transform. The long-term trend of a sustainable earth means providing abundant and stable green energy and has become the top priority for the development of new-type public utilities.
As the only public utility fund issued by a domestic investment trust in the Taiwan market, the investment team of Yuanta’s Global Utility Fund pointed out that utility stocks have always been positioned as defensive stocks but, in the general clean energy and low-carbon economy, no matter the industry, the first step in the transformation of enterprises is to use clean power. Public utilities with wind and solar power plants have become the hottest topic recently. It is recommended that investors allocate funds to public utilities that have entered green energy development.
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