Page 4 - ISQ UK_October 2021

INVESTMENT STRATEGY QUARTERLY

The World Awakens

Chris Bailey, European Strategist, Raymond James

“ Following the light of the sun, we left the Old World ”

- Christopher Columbus

This year, the first half of November may help progress a temperature target, namely restricting a rise in temperature to
C
range of important initiatives for much longer than just 1.5 by halving carbon dioxide emissions by 2030. Whilst the con-
vergence of a ‘movement of movements’ is building, it is difficult
the rest of this decade. The international climate summit
to have truly global applications, given that developed market
COP26 will take place in Glasgow between Monday 1 nations cannot easily criticise the very same economic growth
November and Friday 12 November and there is much to engines that they applied themselves over recent decades. Fortu-
discuss. After all - as noted by the U.K. government recently nately, periods of change and new insights are applied all the more
quickly. Acknowledgement of this alone would allow discussions
- COP26 may be our last ‘best hope for the world to come
in Glasgow to have some real impacts over the next two or three
together and tackle climate change’, beyond hopes already decades, something that financial markets might find comfort in.
forged at the 2015 Paris Agreement.
But what about current energy price concerns, not just in
However, the world has already evolved in many ways over the last the U.K. despite the rise of both wind and solar power solu-
six years with the growing global influence of emerging market tions? ‘Green’ energy focus by the end of the next decade
nations - even given the COVID-19 crisis. This alone can make and hitting net zero emission by 2050 remain far more
discussions more challenging for a world where rising global consistent with continued nuclear energy than gas and
emissions are already expected to breach the Paris Agreement
coal in particular. As always change occurs over time.

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