Thematic Research
Simple Not Easy
Opportunities In Active Net Zero
SIMPLE NOT EASY
OPPORTUNITIES IN ACTIVE NET ZERO
INDUSTRY BACKGROUND RESEARCH AVAILABLE TO ALL PROFESSIONAL INVESTORS UNDER MiFID II AS A MINOR NON-MONETARY BENEFIT
Achieving global net zero emissions is simple in concept but not easy in practice. Simple in concept because pathways have already been evaluated and solutions identified. Not easy because there are challenges in executing these solutions. Fortunately, the problems can be resolved and this in turn creates additional opportunities for investors. These active net zero opportunities are in renewables, storage, hydrogen, efficiency and BECCS. Our market size estimates of these show demand above expectations.
Key Takeaways:
• Essential for Net Zero: Active Net Zero technologies are as vital to the energy transition as brakes are to a car — they enable deep decarbonisation across electricity, transport, heating, and industry.
• Significant Market Scale: Forecasts indicate up to 22.5TW of renewable capacity and 781Mtpa of hydrogen demand by 2050 — more than 10% higher than mainstream estimates — alongside substantial growth in energy efficiency and carbon removal.
• Broad Range of Solutions: Delivering Net Zero requires diverse options — from lithium-ion and other battery storage for short-duration balancing to green hydrogen for long-distance shipping and BECCS for negative emissions.
• Policy and ESG Momentum: Government commitments across the US, EU, China and beyond, combined with growing investor focus on ESG and the “Active Net Zero” concept, will drive substantial capital into these solutions over the next decades.
• Investment Opportunities: Multiple companies across the value chain offer exposure — from innovators like ITM Power and Ceres Power, to established renewable developers like Drax and Orsted, to energy efficiency plays like SDCL Energy Efficiency Income Trust.
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These active net zero opportunities are in renewables, storage, hydrogen, efficiency and BECCS. Our market size estimates of these show demand above expectations