Low carbon transition

Tracking the low-carbon transition

We see the transition to a low-carbon economy having implications for macroeconomic trends and portfolios. We are providing clients with the solutions and tools to help them achieve their investment objectives.

To serve our clients, we have 700+ global sustainable and transition specialists focused on providing customized insights, data and a choice of investment solutions and technology tailored to our clients' needs.

We approach this work solely in service of our clients' best financial interests. That is the foundation upon which we built BlackRock into the most trusted asset manager in the world¹ – a total focus on our clients, underpinned by our respect for their diverse preferences and uniqueness.

Why does the low-carbon transition matter for our clients?

Structural shifts associated with the low-carbon transition – technological innovation, consumer and investor preferences for lower-carbon products, and shifts in government policies – are reshaping production and consumption and spurring capital investment.

Our global team of investment and sector specialists, climate scientists, data analysts, and engineers research macroeconomic and investment trends related to the transition, in order to evaluate risks and opportunities and deliver unique insights to clients.

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Three forces are driving this economic transformation, with implications across regions and sectors

^{1. BlackRock is trusted to manage more assets than any other global asset manager, with an AUM of $9.1 trillion as of September 30, 2023.}

^{2. BloombergNEF, Top 10 Energy Storage Trends in 2023.}

^{3. BloombergNEF, Electric Vehicle Outlook, June 2022. This figure reflects the report’s Economic Transition Scenario.}

^{4. BII, Rocky Mountain Institute, and European Commission, December 2022. $ figures are shown in USD.}

Hear from business leaders and investors leading the transition

BlackRock speaks to thought leaders and industry experts from around the globe about the biggest trends moving markets. Listen to companies, business leaders and investors at the forefront of the transition to a low-carbon economy.

Low-carbon transition investing 101

The transition to a low-carbon economy has emerged as a key player in the five mega forces that the BlackRock Investment Institute has outlined in recent episodes. But what exactly does it mean to "invest in the transition to a low-carbon economy"?

The race is on for EVs

Charlie Lilford, portfolio manager from BlackRock’s Fundamental Equities business joins host Oscar Pulido to talk about the rate of adoption of electric vehicles across the world and where he sees the most exciting investment opportunities.

The role of food in the transition to a low-carbon economy

According to a 2021 UN-backed report, the world’s food systems account for approximately one-third of human-caused emissions.

Mark Schneider, CEO of Nestle, the world’s largest food and beverage company, joins The Bid to discuss how food – from the farm to the fork to the compost bin – plays a role in the transition to a low-carbon economy.

Innovation in action

We visit a range of portfolio companies that are developing innovative solutions that could transform their industries.

Transcript

Mark: When do we start to lift out of the water? Gustav: So the take off speed is around 16 knotts. Mark: Punch it! Woo! Mark: We hope to hit the wake in time! Mark: That was amazing! Mark: By the way we totally need to play “Ride of the Valkyries” in the video. Out of Office Open Mark: When you think about electric vehicles, you think about cars, you might even think about trucks. But today, we're going to be thinking about boats, electric boats. I'm in Stockholm, Sweden. This is an electrofoil boat, and we're going to hear about how this may be part of the future of boat transport. Mark: We're standing right in front of the Candela C-8. Gustav: Exactly. Mark: What is it? Gustav: It's an electric foiling boat and it's super fast, and has the longest range of any electrical boat in the world. Source: Candela, September 2023 Also, we create no wake. The key point with foiling is that it's much more efficient. So you cut the energy by 75%. Source: Candela, October 2023 The wings are underneath the water, the hull is above the water, so there's nothing that touches the surface. And there you have no wake. Mark: And that's basically why it's so much more efficient. You're not pushing water out of the way. Gustav: Exactly. Mark: And how fast can you go? How far can you go and how do I recharge? Gustav: So this boat makes 27 knots as a top speed. Then you can run for 57 nautical miles. Recharging, it depends. I mean, if you do fast charging, we can do it in like 35 minutes. Source: Candela.com, September 2023 Mark: Let's also talk about public transport. Should we go over and maybe look at the ferry? Gustav: Yeah. Let's do that! Gustav: This is a ferry, and it's our first ferry that we built, and it's the first electric foiling ferry in the world. Source: Candela.com, 23 May 2022 In Stockholm, we are going to be able to run much faster than boats are running today and cut commuting times with 50%. Source: Candela.com ,23 May 2022 You also need only one staff on board, which helps to lower the cost. So enough talking about boats. Let's go boating instead. Mark: Oh yeah! Gustav: Now we are flying. Mark: Oh my God Mark: And there is no wake! Gustav: No. Mark: There is no wake. Gustav:That's pretty amazing actually. Mark: So that was awesome, but now I feel like I’d like to drive. Mark: We are in the air! Mark: Lets land. Gustav: So then you just pull the throttle to the middle here. Mark: Woah!! Candela is reimagining the future of boating by electrifying marine transportation. Mark: Hydrofoiling, electric driving, super quiet, amazing! Mark: That's a wrap!

Related transition resources

Tracking the low-carbon transition

The transition to a low-carbon economy is set to spur a massive reallocation of capital as energy systems are rewired.

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Climate resilience: an emerging investment theme

Moving beyond risk assessments to climate resilience as an investment theme.

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Emerging markets: financing the transition

Emerging markets are pivotal to the global transition to a low-carbon economy. Reforms to plug the shortfall in investment could present both opportunities and risks for investors.

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