What were the key takeaways from COP28?
David Harrison, manager of the Rathbone Greenbank Global Sustainability fund, gives his reaction to COP28 and what it means for his investments.
View the transcript
Expectations going to COP28 were fairly low, with many anticipating a watering down of commitments. Importantly, for the first time, there was clear language to transition away from fossil fuels in order to achieve net zero by 2050. This was not expected, and as such a real positive surprise.
Moreover, the commitment to triple renewable energy capacity by 2030 was also very welcome and will only accelerate investment in these areas. Undoubtedly, we believe this will have a positive impact on companies exposed to the energy transition. For a business like Linda [Plc], which we’ve held in the portfolio since 2018, we expect to see further sustained investment in hydrogen technology. Linde is one of the largest players in hydrogen energy installations and works with customers across multiple industries. It has a proven ability to deliver complex projects and build up a vast knowledge base in the space.
Investment in electricity grid infrastructure remains critical as we transition more to renewable energy, and a company like Schneider Electric will be a key beneficiary in our view. Like Linde, Schneider enjoys long-term relationships with his customers and has invested significantly in the areas such as energy storage, which should see strong demand in the next several years.
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions.Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice.Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.
