New Enlightenment China may have already won the green innovation race
In this episode, Adam Dixon and Aniket Shah discuss the implications of Donald Trump's presidency on climate change and energy policy, China's lead in the green technology sector, and the current thinking on ESG investing. They explore the complexities of global emissions, the potential for breakthroughs in energy technology, and the need for adaptation strategies in a warming world. They also explore the financial implications of climate change solutions, emphasizing that the costs associated with addressing climate change are manageable when viewed in the context of global GDP and energy spending. The conversation also critiques the ESG (Environmental, Social, and Governance) framework, addressing the confusion within the ESG community regarding its purpose and effectiveness. Ultimately, they advocate for a clear understanding of the system and the roles different stakeholders play in driving sustainable finance and climate action.
Takeaways
- America is a fossil fuel superpower, impacting its energy transition.
- Trump's presidency may not drastically hinder decarbonisation efforts.
- State-level initiatives in renewable energy are gaining momentum.
- China is leading the global race in green technology.
- The US's role in global emissions is only 10-12%.
- Investment in low carbon technologies is increasing globally.
- The missing middle in climate tech funding is a significant challenge.
- Adaptation and carbon removal must be prioritised in climate strategies.
- A mixed economy approach may emerge under Trump's leadership.
- Solving climate change can be financially feasible.
- Investment in low carbon energy is already happening.
- Adaptation should be viewed as infrastructure investment.
- Demand-side solutions are crucial for climate action.
- ESG is confused about its purpose and effectiveness.
- Clear analysis leads to better investment decisions.
- Historical emissions create ethical obligations for high emitters.
Adam Smith's Panmure House:
Adam Dixon:
Aniket Shah: