Energy Transition
The Global Journey to Net Zero
The Challenge
At ThomasLloyd, we see beyond the horizon. We understand that human-induced climate change is the most significant and pervasive threat our planet and society have ever faced. This challenge presents a historic investment opportunity, and we are uniquely positioned to lead the charge.
The Context
Human-induced climate change is pervasive and significant, putting our planet and society at peril. Already, it has increased the scale, frequency, and intensity of heatwaves, wildfires, droughts, floods, and storms the world over, leading to a surge in humanitarian emergencies. To stabilise and mitigate the worst effects of climate change, we must act urgently. The science is unequivocal: we must achieve net-zero greenhouse gas (GHG) emissions by 2050 and limit global warming to 1.5°C above preindustrial levels.
Reaching net zero by 2050 will require a systemic transformation of the global economy. This includes significant investment in clean energy and technologies amounting to approximately USD $275 trillion between 2021 and 2050 — equivalent to about 7.5% of global GDP annually.
What This Means for You
Changing climate regulations and social expectations are putting businesses under pressure to reach net-zero emissions as soon as possible. With every sector and company responsible for varying types of emissions, each entity needs a customised climate solution that addresses their specific emission areas and locations. This includes identifying and measuring current emissions and developing and implementing appropriate mitigation and adaptation strategies.
Where the Market Falls Short
Most widely available solutions are off-the-shelf and address emissions challenges in a piecemeal way. Some operate only in specific regions while others support only parts of a user's need. This leaves businesses scrambling to create their own solutions, making it even more challenging to reduce emissions. Businesses need a holistic provider that is equipped to address all of their challenges and more effectively combat the worst effects of climate change.
Transforming Global Emissions into Investment Opportunities
The global emissions landscape is dominated by multiple key sectors, including energy, industry, mobility, buildings, agriculture, forestry, and waste management. Energy use alone is responsible for a staggering 83% of all CO2 emissions.
The energy market is already evolving rapidly to address this, driven largely by four key trends:
- Decarbonisation: Reducing carbon emissions through the use of low carbon sources.
- Decentralisation: Shifting from centralised to distributed energy systems.
- Democratisation: Making energy accessible and affordable for all.
- Digitalisation: Leveraging digital technologies to enhance efficiency and innovation.
