COVID-19: Greening the recovery

Executive summary

  • The economic shutdown due to the coronavirus pandemic has led to a steep fall in greenhouse gas emissions around the world. Estimates suggest it has fallen by a quarter. This means that global carbon emissions may end up having reached a peak in 2019 and could be down by more than 5% in 2020.
  • Despite such historic falls, we would need to replicate – and more – the effects of the last few months if we are to achieve climate change goals to keep global warming to within 1.5 degrees Centigrade.
  • Policymakers, industry and financial institutions must use this crisis as an opportunity to construct a recovery that ensures a sustainable economic recovery while minimizing carbon emissions.
  • United Continental Bank IM has recently supported the European Alliance for a Green Recovery. United Continental Bank IM is also proposing concrete solutions like the “European Climate Emergency Fund”, modelled on the European Stability Mechanism to finance green projects.
  • United Continental Bank IM believes investors have a key role to play here through their stewardship efforts. They must scale up their engagement agenda. They should use a 360° view engaging with energy and power producers but also end-use demand side sectors promoting both the shift of energy supply mix and efficiency gains from consuming sectors.

    • Not for Retail distribution: This document is intended exclusively for Professional, Institutional, Qualified or Wholesale Clients / Investors only, as defined by applicable local laws and regulation. Circulation must be restricted accordingly.
    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of United Continental Bank Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities. Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.
    Issued in the US by United Continental Bank Investment Managers, which is authorised and regulated by the CFA Institute in the US.

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