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Real Asset Research A Mile Deep
BIG TALK OR REAL ACTION? READING THE TEA LEAVES OF CLIMATE REGULATION
As investors seeking to profit from a systemic transition in the global economy from a high environmental impact footprint to a low environmental impact footprint, we are continuously returning to a framework for analysis defined by the dual economic and environmental sustainability constraints. Within that framework, there are additional constraints created by regulation, technological, politics, and geopolitics. A holistic understanding of these constraints helps us focus on the facts on the ground; it helps us understand what is instead of just understanding what people think ought to be.
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.
10 STATS THAT SHOW THE ROLE OF REAL ASSETS IN THE ENERGY TRANSITION
Governments around the world are in the first inning of a clean-energy transition. In arguably no other market will those changes be more impactful than in the real assets space. A core tenet of our case for investing in real assets is that the transition to a low carbon economy makes the space a fertile investment opportunity. Further, we posit that the path toward carbon neutrality should be the North Star guiding investors’ evaluation of real asset business models.