Page 23 - ISQ UK_October 2017

JANUARY 2022

Low-Carbon Energy Technologies

SOLAR WIND ELECTRIC VEHICLES
• 4% of US electricity mix, but 40% • 9% of US electricity mix, but 30% • 5% of US auto sales,
of new power plants of new power plants up from 1% in 2015
• Highest market share in Hawaii, • Highest market share in the • China and Europe together
Puerto Rico, and California Midwest comprise more than 80% of
global sales
• Internationally, key markets • Internationally, key markets
include China, India, Japan, and include China and the North • Several major automakers have
Germany Sea region pledged all models to be electric
by 2035/2040

Needless to say, sticks are more politically sensitive, which explains
why climate action at the federal level in the US – at a time when KEY TAKEAWAYS:
the Senate is divided 50/50 – will remain limited to carrots for the • Pandemic-related headwinds, especially in avia-
foreseeable future. There are, however, more ambitious policies in tion, are still a headwind for demand.
politically progressive ‘blue’ states. Furthermore, there is an impor-
tant role for voluntary, self-motivated action on the part of the • We forecast that West Texas Intermediate (WTI)
private sector. Governments can legislate net zero CO emissions crude will average $75/Bbl in 2022, ending the year
2
(carbon neutrality), but in the absence of such policies, plenty of at $80/Bbl. Brent crude, the global benchmark,
multinational companies have set analogous targets for them- should remain a few dollars above WTI.
selves. At a time when one-third of all professionally managed • Energy transition is an irreversible megatrend –
assets in the US – equity and debt combined – are in ESG funds, and, ultimately, more important for the Energy
shareholders are influencing companies to take action even if poli- sector than either COVID or geopolitics.
cymakers are slow to jump on this bandwagon.

23