COP26: an inconvenient truth - Newton Investment Management

Newton Investment Management Ltd explore the realities of carbon emissions and how emerging markets are key to achieving net zero.

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The UK is one of the highest importers of carbon, with over 40% of emissions embedded in trade, while the US per-capita emission intensity is more than twice the figure for China, and eight times that of India. Europe and North America alone have contributed approximately 60% of total cumulative emissions.

It must be recognised that emerging-market economies are changing in terms of their energy consumption, but at different rates compared to more mature economies; there is no directional issue, but there is a timeline issue.

Developed-market leaders must appreciate these challenges and provide large-scale financing support to accelerate these energy transitions.

When deploying capital, Newton Investment Management Ltd look for large addressable-market opportunities, tangible catalysts for traction, and leading companies – and they would argue that the best investment opportunities can be found in the developing world.

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