Jean-Philippe Desmartin, Head of the Responsible Investment Team
Good news for COP 30, starting with “cheaper, baby, cheaper!”
After three years of COPs in fossil fuels countries, COP 30 returns to a more fitting destination in Belém, Brazil. There will undoubtedly be significant pressure, especially given the absence of the world's largest economy, the United States, and Europe's likely more defensive stance. Europe has traditionally led climate COPs over the past decade (Paris Agreement, COP 26 in Glasgow, etc.).
However, we can expect good news at the upcoming COP 30. This good news will come from the Global South, from the host country Brazil, but above all from China and, to a lesser extent, from India and other countries in the Southern Hemisphere, which is, and will continue to be, much more affected by climate change than the Northern Hemisphere. Beyond COP 30, the good news is that the facts are there: the energy and environmental transition is underway. This is essential if we hope to limit climate change to below or around 2°C.
China is clearly setting an example. The Middle Kingdom announced this initiative in 2009 and is pursuing its long-term environmental goals year after year. China is simply showing the private sector that the transition is a successful business case with the following outcomes:
— Renewable energies, which are becoming increasingly competitive every year without public subsidies, “cheaper, baby, cheaper!”, with solar energy at the forefront.
— The creation of local and sustainable jobs, far more numerous than in the fossil fuel sector, for both skilled and unskilled workers. We must therefore not pit the environment against social issues.
— Energy security is an imperative, a topic that has also been high on Europe's agenda since early 2022 and highlighted in the Draghi report of September 2024.
— An economic position acquired over the last 15 years as the undisputed leader in strategic industrial sectors such as wind power, solar power, batteries, and electric vehicles, which Europe should urgently draw on to maintain its position in sectors it still controls (electrification, hydrogen, nuclear power, energy
storage, etc.).
Enjoy your reading!
Summary:
• News: Planetary Boundaries
• From an academic point of view: Sustainability and Freedom by Danny R. Dekker, Suzana Grubnic, Andreas G.F. Hoepner, Andrew Vivian
• Company meetings: Focus on a recent IPO: Pfisterer
• Recommended reading: Rapport REN21 – All the key figures on energy transition and renewable energy
• The responsible investment team in action: The IR team at the heart of celebrations and debates in October