345. Decarbonisation, investment trends & the next big shifts

The path to net zero is far from certain. While climate-focused investments are growing at an unprecedented rate, global emissions continue to rise. Deirdre Cooper, manager of the Ninety One Global Environment fund, joins us as we discuss the latest trends in decarbonisation, the influence of political shifts on clean energy, and the role of major players like China in driving investment. We also examine how regulation, interest rates, and market sentiment impact the sector’s performance, shedding light on the opportunities and risks shaping climate investing in the years ahead.

What’s covered in this episode: 

• Are we seeing improvement on climate targets?
• The possibility of a Minsky moment 
• How will a Trump administration impact climate spending?
• The changes to the Inflation Reduction Act 
• Performance on the clean team sector
• Why is China seeing such significant growth? 
• Where are the current risks in this sector? 
• Why has consumer behaviour been slow to change? 
• Does change in sentiment create more opportunities for investment?
• Three opportunities today

More about the fund: Launched in December 2019, Ninety One Global Environment is a global equities fund that includes emerging markets, but which has a unique approach of only investing in companies that are contributing to the decarbonisation of the world economy. The portfolio has complete conviction, with just 20-40 holdings, and will have limited crossover with peers or its benchmark. Managers Deirdre and Graeme try to make the overall portfolio style neutral, with the stock selection set to be the primary driver of returns.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.