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Memos from Howard Marks: Ruminating on Asset AllocationNet zero by 2050 hinges on a significant leap toward clean energy in this decade. But the path is narrow—and staying on it requires immediate and massive deployment of all available technologies.
Decarbonizing the energy sector—which is responsible for 73% of global carbon emissions—by 2050 requires an unprecedented leap in clean energy investment this decade. It represents the single largest decarbonization opportunity in the world today. Electrification of industry and transportation is also a huge driver of the net-zero transition—but only to the extent that clean forms of energy are used. The resulting increase in demand for electricity worldwide redoubles the need for investment in clean energy technologies.
Every industry requires power and every business needs to decarbonize. While the low-hanging fruit in every decarbonization plan is simply cleaning up the power a company uses to support its business—known as Scope 2 emissions—many companies are unsure of how to do it. Therefore, many companies will need to partner with solutions providers to help put them on a net-zero trajectory. Decarbonization solutions include renewable power generation (mainly wind and solar, including distributed generation), green hydrogen and battery storage.