Decarbon Daily - Issue for August 20, 2021

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Market Sentiment Slides

The market is choppy with more uncertainty due to the Delta variant. Large public companies continue to temper shareholder expectations as global supply chain disruptions occur across industry segments. Toyota announced a 40% reduction in output due to chip shortages. Retail, restaurants, and transportation sectors continue to face worker shortages.

The Equipment Leasing & Finance Foundation released the August 2021 Monthly Confidence Index for the Equipment Finance Industry (MCI-EFI), showing the overall confidence level at 66.6 for August, a decrease from 72.9 in the July survey.

When asked to assess their business conditions over the next four months, 35.7% of executives responding said they believe business conditions will improve over the next four months, down from 58.6% in July. 64.3% believe business conditions will remain the same over the next four months, up from 41.4% the previous month.

Uncertainty Brings Opportunity

A more resilient company supply chain is critical for the overall global supply chain. Human, natural, and material disruptions will continue as we face the consequences of a global interconnected supply chain.

However, too often companies speak to the downside of risk. There is climate risk in all facets of the global supply chain but there is upside as well. Additional investments from government and corporations will reduce transportation emissions as entities take decarbonization action. By changing the emission profile in transportation and energy, we will be able to put a meaningful dent in total emissions.

Woodmac analysis of 45 international oil companies show tremendous opportunity for oil & gas firms:

If the windfall capital expenditure was channelled — at a ratio of 2:1, respectively — into low-carbon spending versus oil and gas, those 45 companies would have $660 billion of investment firepower to put towards decarbonisation

That firepower could accelerate energy technology's go-to market in exciting ways!

Inside this Issue

🛢 Estimated $1 trillion oil and gas windfall could speed decarbonisation
📉 Is there an investment opportunity for 'bad' ESG assets?
🥇 Climate tech: How ESG investing is evolving into ‘a profitable endeavor’
☁️ Investing in low-emissions energy is the key to the climate crisis
💰 Ample raises $160M to scale its battery swapping service
🔋 BMW secures funding for EV battery aiming to rival range of a traditional engine