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Real Asset Research A Mile Deep
GAME CHANGERS: DECARBONIZING INDUSTRIAL HEATING
In the first edition of our ongoing Game Changers series, we examined the copper industry and demonstrated that, despite the small carbon footprint of the industry, and the relative abundance of available solutions with which the copper miners could decarbonize, there was still a need to pull multiple levers across different parts of the production chain. As we delve deeper into the challenges associated with decarbonizing the real asset eco-system and look forward to future posts that examine specific downstream industries with complex processes, we need to improve our industrial literacy.
GAME CHANGERS: CLIMATE-FRIENDLY INNOVATION IN THE REAL ASSET ECOSYSTEM
The utility and light-duty transportation industry have received the bulk of decarbonization focus to-date. Together, they account for anywhere from 40% to 53% of total energy-related CO2 emissions.1 The progress in these sectors has been significant, and the solutions are, at this point, well understood. In a sense, we have moved from a period of needing to prove a concept to a period of needing to execute.
THE FUNDING CONUNDRUM: THE CHALLENGE OF FINANCING CLEANTECH INNOVATION
In our recent writing on the energy transition, one of the themes we have touched on is the need to increase investment in two types of firms: transitioning companies and enabling companies. These are businesses that either make goods to enable a transition or businesses that produce economically critical goods that need to transition their processes to lower carbon outputs.