BAKU, Azerbaijan, Jan.24
By Leman Zeynalova – Trend:
A continued acceleration of low-carbon transition pressures is expected in 2022, despite the strains of the post-pandemic recovery, Trend reports with reference to Energy Intelligence.
“Our core “Accelerate” case sees the transition continuing to gain pace, as policy pressures grow and low-carbon technologies become more competitive. We view our (faster) “Boost” case as a more likely alternative than our (slower) “Blowout” scenario. Our radical “Net Zero” scenario is least likely, but will shape debate,” the company said in its 2022 Outlook.
The company believes that investor pressures will focus on interpreting and implementing new net-zero standards.
“We expect more focus on granular disclosure and capex detail, and scrutiny of spending decisions. Calls to reduce (not just decarbonize) production could become more common. Rapid EV sales growth could send a key signal in 2022, with EU and China already trending to around 20 percent of auto sales. We anticipate intensifying scrutiny of all fossil fuel investments, with wide-ranging industry implications,” reads the report.
Energy Intelligence notes that as investors and banks advance their own carbon-neutrality plans, they will press companies to sharpen transition efforts.
“Institutions may shift portfolios away from higher-carbon assets. Scrutiny of end-use emissions will remain a high priority, even if US firms retain more leeway than European peers. Engagement efforts may include more aggressive tactics, and divestment threats will grow. Project financing will be harder to secure, with stricter criteria,” the report says.
---
Follow the author on Twitter: @Lyaman_Zeyn