COP26 focuses the interest of investors on the critical materials necessary for a global vision of clean technologies

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COP26 is now over and the changes will impact the cleantech sector in the years to come. Some came out disappointed with the lack of commitment from the 197 countries participating in COP26; however, there have been many positive steps outlined below.

The main results of COP26

  • The “Glasgow Climate Pact“was presented. It aims to limit global warming to 1.5 ° C. It calls for a more ambitious climate response on reducing emissions, financing climate management and a commitment to double funding for climate change. adaptation, and financing the loss and damage already caused by global warming Countries have been urged to “review and strengthen” their climate commitments by the end of 2022.
  • New transparency rules to ensure countries report enough information to determine whether or not they are meeting their commitments.
  • The first COP decision to explicitly target actions against fossil fuels, calling for a relentless “phase-out” of coal and a “phase-out” of “inefficient” fossil fuel subsidies.
  • COP26 finalized the rules for global carbon trading; however, under the rules, the fossil fuel industry will be allowed to “Offset” its carbon emissions and continue to pollute.
  • Beat Records pledges of $ 365 million Adaptation Fund. This was triple the amount raised last year, with contributions from the United States and Canada for the first time.

Note: The Adaptation Fund is set up to help developing countries build resilience and “adapt” to climate change.

Sectors and companies benefiting from the changes of COP26

The renewable energy sector will continue to benefit from this. In particular, solar, wind, hydraulic and geothermal energy. Nuclear power will also benefit. The pressure for an increase in global warming limited to 1.5 ° C and the willingness of countries to review and strengthen their climate commitments by the end of 2022 should also be a positive catalyst for the future of energies. renewables and nuclear energy.

Carbon capture and storage (“CC&S”) should also continue to benefit. The “phase-out” (not the “phase-out”) of coal means that CC&S can continue to play a role in reducing carbon emissions.

Zero-emission vehicles such as electric vehicles (“EVs”) have indirectly benefited from a boost with the COP26 decision to phase out “inefficient” fossil fuel subsidies. If implemented, fossil fuels would become relatively more expensive, making electric vehicles relatively more attractive.

Companies working in the cleantech sector will benefit from the renewed impetus of COP26 to reduce emissions.

Many InvestorIntel member companies stand to benefit

When you look at the list of InvestorIntel member companies, the most notable feature is that many are involved, directly or indirectly, in the clean and green technology sectors. For example, Carbon diffusion company (NEO: NETZ) invests in carbon credits, Cielo Waste Solutions Corp. (TSXV: CMC | OTCQB: CWSFF) becomes polluting renewable fuel waste, dynaCERT Inc. (TSX: DYA | OTCQX: DYFSF) reduces emissions cars, H2O Innovation inc. (TSXV: HEO | OTCQX: HEOFF) uses technologies to create clean water and wastewater treatment, Ideanomics, Inc. (NASDAQ: IDEX) invests in and supporting the electric vehicle industry, Nano One Materials Corp. (TSX: NANO) is working on development and commercialization better and cheaper cathodes for lithium-ion batteries, and NEO Battery Materials Ltd. (TSXV: NBM) is development of silicon anodes for lithium-ion batteries..

Mining companies that produce or work to produce the raw materials used in solar and wind power, as well as electric vehicles, batteries and other energy storage products, stand to benefit. This includes the rare earth (Appia Rare Earths & Uranium Corp. (CSE: API | OTCQB: APAAF), Search Minerals Inc. (TSXV: SMY | OTCQB: SHCMF), USA Rare Earth, LLC, Vital Metals Limited (ASX: VML); lithium (Avalon Advanced Materials Inc. (TSX: AVL | OTCQB: AVLNF), Critical Elements Lithium Corporation (TSXV: CRE), Neo Lithium Corp. (TSXV: NLC); cobalt (CBLT Inc. (TSXV: CBLT), Global Energy Metals Corporation (TSXV: GEMC); graphite; nickel (Nickel 28 Capital Corp. (TSXV: NKL); manganese; the copper (Kodiak Copper Corp. (TSXV: KDK), Murchison Minerals Ltd. (TSXV: MUR); vanadium and scandium (Imperial Mining Group Ltd. (TSXV: IPG), Scandium International Mining Corp. (TSX: SCY). magnetic materials manufacturer Neo Performance Materials Inc. (TSX: NEO).

Finally, a gradual reduction of coal is a positive element for the smart nuclear sector and, therefore, the uranium miners and explorers such as Energy Fuels Inc. (American NYSE: UUUU | TSX: EFR), Ur-Energy Inc. (American NYSE: URG | TSX: URE), Western Uranium & Vanadium Corp. (CSE: WUC | OTCQX: WSTRF), Fission 3.0 Corp. (TSXV: FUU | OTCQB: FISOF), Appia Rare Earths & Uranium Corp. (CSE: API | OTCQB: APAAF), and Azincourt Energy Corp. (TSXV: AAZ).

Closing remarks

COP26 may have been more successful than some report. The phasing out of coal is a good achievement, with India joining for the first time. The new transparency rules are underestimated, given that there is currently no penalty for not meeting climate change targets (only naming and humiliation). New rules for the global trading of carbon credits are also a positive step forward. Also, the tripling of pledges to the Adaptation Fund to help developing businesses is welcome.

Investors could look at InvestorIntel’s membership roster and select the companies they believe align best with the changes from COP26 and the massive trend towards reducing emissions and producing energy and technology. green this decade.

See you next time for COP27 in November 2022, this time in Egypt.


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