The Monthly Dose of Climate Solutions, April Edition

Welcome back to The Monthly Dose of Climate Solutions , your monthly digest of our analysis of market movements and trends in the transition to a low carbon economy!

In this edition, we highlight key market developments in the world of energy transition such as drawdown levels that showcase the dramatic correction in share prices of companies at the centre of climate change solutions. We have also included two thought-provoking conversations from Marek Kubik, Battery Expert and MD at Fluence, on virtual transmission and solving the renewable energy intermittency; and Robert West, CEO, Thunder Said Energy on the impact of the Russia-Ukraine crisis on energy transition. ?

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News and Views

The transition is inevitable, but it is not going to be orderly, and it is currently discounted

April was a sea of red with rising inflation, recession fears, a re-lockdown of China, and no sign of a resolution in Ukraine. We expect “brown value” (trap) to remain a hot topic until central banks prove they can combat inflation, the war ends, no more interest rates are expected, and supply chain issues subside. Less risk aversion would allow a return to growth, and we expect “green growth” to be the beneficiary.

?Germany’s “Easter Package” is presented

After only five months in office, Germany's new Energy & Economy Minister, Robert Habeck, unveiled his 600-page "Easter package" aimed at replacing nuclear, gas, and coal with renewable energy. Early in the month, Germany delivered on its promise to accelerate the transition to a 100% renewable grid to 2035.

For a detailed analysis, read here .

Data Spotlight

Drawdown levels showcase the dramatic correction in the shares of the companies behind the most relevant climate change solutions

We share the 52-week drawdown levels for small, mid, and large cap companies (excluding Tesla as a mega cap name) and current Price to Sales multiples, as well as EV/EBITDA multiples for the large cap names.

Article Spotlight

The Rise of ESG 3.0: How the Future of ESG Can Deliver Better Results

In my recent article for Nasdaq, I discuss how data enables the formation of a new generation of ESG investment, "ESG 3.0." I am convinced that future financial products with ESG aims will be built on forward-thinking, measurable criteria that demonstrate causality.

Podcast Spotlight

Unlocking the potential of batteries with Marek Kubik

Marek Kubik is an energy storage aficionado and a big believer in the power of technology to fundamentally improve our living standards. In a recent podcast, Marek talks about Fluence’s strategy, Virtual Transmission, how to solve renewable energy intermittency, the Irish grid and much more.

A Sustainable Future: Rob West, Thunder Said Energy, on What the Russia-Ukraine Conflict Means for the Energy Transition

Rob West is the CEO of Thunder Said Energy, a London based research consultancy working on the energy transition. In this podcast he elaborates on the trilemma that preoccupies all governments: balancing decarbonization with energy security and affordability. Listen to hear more about the short-term solutions vis-à-vis long-term goals.

What are your thoughts on our viewpoints, as well as other developments affecting the energy transition? Join the conversation in the comments below.