Key fasteners vital for an eco-friendly tomorrow.
In a world where more than 90% of the global population resides in regions that fall short of the World Health Organization's air quality standards, the urgency for climate change mitigation has never been greater. This pressing issue, however, also presents an opportunity for investment, as highlighted by Tim Bachmann, a fund manager at DWS with a sustainability focus.
Bachmann advocates for investment in sectors critical for combating climate change, such as transport, real estate, and energy generation.
Transport
The shift towards electric vehicles (EVs) and sustainable public transportation systems is a key focus. The global market for bicycles and e-bikes, already at the level of motorcycles and recreational vehicles, could play a significant role in urban mobility. By 2030, electric vehicles could account for around 35% of the world market, according to Bachmann.
Real Estate
In the real estate sector, the development of energy-efficient buildings and the retrofitting of existing properties to improve insulation and reduce energy consumption are crucial. Smart building technologies also present promising investment opportunities.
Energy Generation
The expansion of renewable energy sources such as solar, wind, and hydroelectric power, along with investment in energy storage and grid modernization, are essential for a cleaner energy future. The European Commission aims to expand Europe's offshore wind energy capacity to at least 60 gigawatts by 2030 and 300 gigawatts by 2050.
The transition to e-mobility and the expansion of renewable energy sources can create long-term job opportunities and new industries. For instance, China's ban on plastic waste imports since 2018 has increased the pressure on Western countries to invest more in plastic waste recycling infrastructure.
The fund industry is expected to play a crucial role in mobilizing private green capital to achieve these investments. Companies offering products like stone wool-based insulation materials, solar inverter systems, heat pumps, high-voltage lines, or lithium batteries could see profit growth in the high double-digit range in the coming years.
It's important to note that a prohibition-focused approach to sustainability is not effective, according to Bachmann. Instead, the fight against climate change should be viewed as an opportunity, not just a risk. A sustainable lifestyle requires personal awareness of consumption and its impact on the ecological and social environment.
In the European Union, the sale of new cars with internal combustion engines is set to end by 2035, and around 13 million zero or low-emission vehicles should be on the roads by 2025. The number of public charging and refueling stations in the EU is expected to reach one million.
Germany, as a major economy and innovation hub, can significantly contribute to the fight against climate change. Extensive investments in climate measures for buildings, such as photovoltaic modules, insulation materials, and energy-saving technologies, are necessary to reach the 55% target.
The European Union has also taken steps to reduce plastic waste, banning the production and marketing of single-use plastics and setting strict recycling quotas for plastic bottles. The directive aims for a 25% recycled plastic content in new plastic bottles by 2025, rising to 30% by 2030, and a 77% collection rate for PET bottles by 2025 and 90% by 2029.
In conclusion, the fight against climate change presents a myriad of investment opportunities in the transport, real estate, and energy generation sectors. By focusing on sustainable solutions, investors can contribute to a greener future while potentially seeing significant returns.
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