Pinar Karaman

Really pleased with the announcement today of VH Global Sustainable Investment Opportunities plc's #GSEO half year 2024 #results, specifically reflecting on the strong underlying performance of the #portfolio. This morning, on our analyst call, I articulated our views on the opportunities for #GSEO in light of increased #demand for electrons caused by the disruptive effect of generative #AI technology on the #energy landscape #globally. Something not fully articulated in recent years by our peers, for whom the role of #renewable #electrons was cast in predominantly #decarbonising our #homes, #industry and #transportation. At Victory Hill Capital Partners LLP we pride ourselves on understanding the whole picture, across different #technologies, #energymarkets and #geographies. Only then can we fully understand how we can enable our #investors to participate in differentiated returns and make a positive #sustainable #impact. #sustainableinvesting #esg #energytransition

30

1 Comment

We talk a great deal about the needs of the Global South but we are still not doing anything meaningful - with COP29 just around the corner we really need to be having more than conversations. I really do believe that there are new levers of influence that should come to the fore - esp. the role that the Middle East is playing as a climate leader and how this can drive sustainable development for the #GlobalSouth. Here are some thoughts in my monthly OpEd for Eco-Business

33

2 Comments

⚡⚡ "Conflicts of Interest: The Cost of Investing in the Energy Transition in a High-Interest Rate Era" Wood Mackenzie's recent publication unveils critical findings for the energy sector: ➡ End of Zero-Interest Era: After decades of low interest rates, central banks globally have initiated the steepest rate hikes in 40 years, marking the end of the zero-interest era. ➡ Prolonged High Interest Rates: The report projects that high interest rates will persist for decades, influencing investment dynamics across various energy sectors. ➡ Renewables vs. Conventional Power: The capital-intensive nature of renewable energy projects, particularly wind and solar, makes them more vulnerable to higher interest rates compared to less capital-intensive conventional energy sources. ➡ Significant Cost Increases: Interest rate hikes have led to up to a 40% increase in the LCOE for renewable energy projects, which could slow down the pace of transition to low-carbon energy sources globally. ➡ Global Economic Shifts: Emerging global trends such as deglobalisation and trade conflicts are expected to sustain higher inflation rates and, consequently, higher interest rates. ➡ Need for Strategic Adjustments: Energy sectors must adapt to this new economic reality by optimizing efficiency and potentially revising financing strategies to mitigate the impact of higher borrowing costs. ➡ Potential Shifts in Energy Transition: There is an observed slowdown in the global low-carbon energy transition, influenced by the increased cost of capital. Interestingly, while renewable energy might see a slowdown, carbon capture technologies may witness a relative increase in focus and investment due to their critical role in long-term decarbonization strategies. #EnergySector #Energy #Renewables #RenewableEnergy #Wind #Solar #HighInterestRates #EconomicAnalysis #InvestmentStrategies #SustainableEnergy #Infrastructure #Investing #Hurdlerates #interestrates #inflation

3

Thank you Sally Duros, recent hall of famer John Lothian from John Lothian News, Nandini Sukumar and Victoria Powell from The World Federation of Exchanges for hosting this virtual roundtable on the question: "Is ESG dead?". Sustainability is a normative concept: there is a lot of subjective discussion about what is right and wrong, good and bad. Creating acronyms and points systems doesn't make it objective and somehow give us a textbook of how to put it into practice. I don't know the origins of the term ESG but like many things in both climate and sustainablity, from where I sit, we had good frameworks decades ago. For example the Bruntlund Report published in 1987 defined 'sustainable development' as "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs" and as far as three letter acronyms or words go, does the 3Ps of People, Planet and Profit (Prosperity) capture it better than ESG? Whatever your view is, action is more important. And markets are important. Markets are a true test of your view of value - you can express your view through price; buying or (not buying) and of course selling. And with the use of environmental markets we should even be able to align planet and profits for the benefit of people. #Carbonomics Great talking with Tomas Thyblad and Laetitia Hamon

11

1 Comment