The themes of climate change, clean energy, and decarbonisation continue to gain traction with various stakeholders across the world. In this second edition of the Global Themes Monitor on Alternative Energy (refer to the first edition here), we highlight recent CS research reports on the theme. During the recently held ‘Leaders’ Summit on Climate’, hosted by the US, several countries raised their 2030 greenhouse gases (GHG) emissions reduction targets.

The US clearly aspires to regain its prominent position in efforts towards handling climate change. CS US ESG research team has analysed various pieces of the puzzle, which need to fall in place for the US to reach its ~50% GHG reduction target. The US Utilities team estimates sharp rise in renewables/storage capex to meet carbon reduction targets.

Our global ESG team shares the outlook for various themes related to decarbonising solutions (Report), and highlights key long-term growth drivers and catalysts on each of the themes (Solar, Wind, Hydrogen, etc.). Climate change targets require investments of US$3 tn annually, including ~4x rise in renewables and ~3x rise in energy efficiency and electrification solutions over the next 20 years, according to the IEA. Continuing from our earlier primers on the topic of Hydrogen in APAC and Europe, the CS Americas team published a report focused on the Americas, and our European Chemicals team identified potential long-term beneficiaries in the chemicals value chain.

China is also working to reduce GHG emissions by first focusing on the power and transportation sectors. CS China Utilities team expects a sharp rise in solar/wind installations during the 14th Five-Year Plan (2021-25). In another report, we dive deeper into the hydrogen value chain within China, which is poised to see increased spending once the country embarks on its hydrogen strategy. Given China’s current primary energy mix, the focus in initial years is likely to be on grey/brown hydrogen. We see strong growth potential in heavy-duty trucks in China’s fuel-cell electric vehicle (FCEV) market.

Based on the deep-dive of our global teams, we present a consolidated list of companies exposed to the hydrogen theme in Americas, APAC, and Europe in Figures 44-46