Most of us agree that the way in which the world produces and uses power in the future will change significantly. The increasing sense of urgency from an environmental point of view to accelerate the transition to clean energy that is generated in a socially responsible way.
Corporate demand for energy efficiency solutions are and will become an increasing driver for cost efficiency and competitive advantage and demand for smart and low-emission buildings, energy-efficient consumer products and appliances is being supported by tightening standards. Cities are applying disruptive technologies to mitigate the environmental impact of rapid urbanisation.
We are seeing the beginning of significant trends, such as e-mobility, autonomous driving and pollution control, are increasingly important in the automotive sector, as increasingly stringent emission standards require an accelerated electrification. The demand environment for renewable energy looks attractive, with ongoing global political support and a rapid cost improvement. Low-carbon-infrastructure stocks continue to benefit from the secular coal power plant displacement.
Environmental policy is increasingly important in China with broad implications for the whole industry. The energy transition is still in its very early stages but we expect this to gain significant traction over coming years in terms of investment opportunities and potential gains.