The Australian Monetary Report advises readers to make the most of local weather investments – what is the level?

Guest essay by Eric Worrall

According to AFR, “you don’t want to have a portfolio that has a high allocation to high-carbon companies that can’t make the transition.” Just one problem – there will be no green energy transition.

Investing in Climate Change: Funny Green Giant Or Next Bubble?

Renewable energy assets are soaring towards $ 4 trillion in the wake of the pandemic and renewed global commitments to net zero emissions. Avoiding harmful sectors and businesses is no longer enough. Investors want to support climate winners.

Tony Featherstone
Contributor March 20, 2021 – 12 noon

Investing in climate change once had a green agenda. Now it’s black and white: Portfolios with highly polluting companies risk asset destruction and missed opportunities.

When COVID-19 broke out, investments in climate change should take a back seat. The opposite happened: money flowed into funds that invest sustainably.

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“Before these changes, it was difficult for markets to fully incorporate carbon emissions into asset prices. There has been too much uncertainty about the position of China and the US under Donald Trump’s leadership on climate policy. There’s a lot more clarity now. “

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“Investors need to respond to this change. You don’t want to own a portfolio that has a high allocation to carbon-intensive companies that can’t make the transition.”

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“Whole balance sheets are trying to find the best renewable assets,” says Glover. “This is associated with the risk of valuation bubbles. We’ve seen a huge surge in renewable energy ratings around the world over the past six months, and clean energy companies trade with significantly higher multipliers. Some reviews are starting to break away from reality.”

Tesla’s valuation of $ 680 billion is a prominent example. Anyone who believes that the visionary electric vehicle company will change the energy markets over 50 years can justify its astonishing assessment.

For everyone else, Tesla is way overpriced

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Read more: https://www.afr.com/wealth/investing/climate-change-investing-jolly-green-giant-or-next-bubble-20210316-p57ba3

How can I be so sure that there will be no green energy transition? The reason is that top engineers and scientists, green enthusiasts who have studied the green transition in detail, are utterly dismayed by what they have discovered.

Can you think of a greener company than Google? Here’s what top Stanford-qualified Google scientists Ross Koningstein and David Fork had to say about the green transition.

What it really takes to reverse climate change

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“At the beginning of RE

Renewable energy technologies just don’t work. We need a fundamentally different approach. “

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Read more: http://spectrum.ieee.org/energy/renewables/what-it-would-really-take-to-reverse-climate-change

Other engineers and scientists have come to the same conclusion.

The limits of clean energy
If the world isn’t careful, renewable energies can become just as destructive as fossil fuels.

BY JASON HICKEL | SEPTEMBER 6, 2019, 8:51 a.m.

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We need a swift transition to renewable energies, yes – but scientists warn that we cannot continue to increase energy consumption at the existing rates. No energy is innocent. The only really clean energy is less energy.

In 2017, the World Bank published a little-noticed report that provided the first comprehensive look at this issue. It models the increase in material extraction that would be required to build enough solar and wind utilities to produce around 7 terawatts of electricity annually by 2050. This is enough to supply around half of the global economy with electricity. By doubling the World Bank numbers We can estimate what it takes to become emission-free – and the results are breathtaking: 34 million tons of copper, 40 million tons of lead, 50 million tons of zinc, 162 million tons of aluminum and no less than 4.8 billion tons of iron.

In some cases it requires the transition to renewable energy a massive increase over existing extraction levels. For neodymium – an essential element in wind turbines – the extraction must increase by almost 35 percent compared to the current level. High-end estimates reported by the World Bank suggest this could double.

The same goes for silver, which is vital for solar panels. Silver recovery will increase by 38 percent and perhaps as much as 105 percent. The demand for indium, which is also essential for solar technology, will more than triple and could soar by 920 percent.

And then there are all the batteries we need to store energy. To maintain the flow of energy when the sun is not shining and the wind is not blowing, enormous batteries at the grid level are required. That means 40 million tons Lithium – a staggering 2,700 percent increase from current extraction levels.

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Read more: https://foreignpolicy.com/2019/09/06/the-path-to-clean-energy-will-be-very-dirty-climate-change-renewables/

Even legendary British presenter David Attenborough wants a “global Apollo green energy program” to try to make renewable energy affordable – a shot to the moon to achieve a goal he knows will not be achievable with current technology is.

Michael Moore gets it – his investigative team set out to identify and expose the great oil conspirators who are working to suppress the green revolution. But Moore didn’t find a major oil conspiracy. What Moore claims to have found instead was a group of greedy green corporate sales that Moore claimed in his film to wildly exaggerate the potential of their expensive government-subsidized renewable energy offerings.

Even countries gifted with an abundance of readily available geothermal and hydropower resources struggle to get them up and running. New Zealand is considering rationing energy and has been accused of cheating its published carbon numbers in an attempt to increase the alleged progress of its emissions reduction plans.

I’m not advising people to ignore renewable energy and just embrace coal and fossil fuels as if the green boost isn’t happening. Governments pile taxes and climate damage on otherwise viable carbon-intensive industries and then in some cases panic and distribute massive subsidies when they find they are about to lose something important. Business valuations across a wide range of sectors are increasingly driven by the whims of politicians, and I have no better idea of ​​what politicians will do next than anyone.

An old banker once said to me, “A lot of people went broke and waited for the market to make sense.” But playing with the stupidity of others or the capricious whims of politicians is also a risk.

All the money in the world is not enough to fund the planned transition to a carbon-free economy. The trillions that Biden and others want to spend will build lots of solar panels and wind turbines – but they will not result in any significant shutdown of shippable power sources. It doesn’t matter how many solar panels and wind turbines you build, wind turbines need wind to run and solar panels need sunlight. If you don’t have one for an extended period of time, as most places do a few times a year, and if there are power outages in neighboring states too, you are out of luck.

So it seems inevitable that at some point in an unpredictable time something will go unglued – at some point investors, voters and politicians will realize that renewable energies are a dead end. What happens after that moment of realization is everyone’s guess.

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