2021 has begun on a positive trajectory and has continued today with President Biden’s Earth Day summit. The shift to replacing fossil fuel based electricity generation with renewable sources has continued with great speed and has even seen the global oil majors increasing participation in renewable energy auctions. But while replacing high CO2-intensive electricity generation and combustion engines with cleaner alternatives will play a significant part in reducing greenhouse gas emissions, they alone will be insufficient to reach our 2050 net zero aims. In order to reach the welcome targets we have set ourselves, we need to start shifting our resources today to find solutions for those activities that will be difficult to electrify. These activities, such as aviation and steel & cement production, constitute 35% of global greenhouse gas emissions currently.
The UK has made great strides in becoming a leader in green hydrogen. By investing in the hydrogen supply chain, we are able to tackle the dual challenge of investing in companies that provide long term impactful solutions to climate change and those that can also provide a strong return going forward.