More reasons to be hopeful for 2023

"For last year's words belong to last year's language, and next year's words await another voice." - T.S. Eliot

As the year draws to a close, many use this time to reflect on what they went through, what they accomplished throughout the year, and what they may change in the year to come.

A new year often inspires us to embark on an exciting new chapter and leave behind the emotional baggage of the past year.

It is an undeviating ritual. The same goes for me.

As a turning point, 2022 was when my relationship with life got richer and deeper as I turned 50. Staying mindful of the present and accepting life's uncertainty, I've come to appreciate aging for its privilege.

I stopped worrying about things out of my control and realized that taking time to be more harmonious with my inner self is precious no matter what. I am bidding farewell to this year with boundless gratitude. It was not easy for the rest of the world, however.

The world reeled from numerous shocks in geopolitics, energy, and economics. High inflation spawned by the energy crisis plagued every individual and taught us to live with the black swan, making the future even less predictable. Even if COVID is no longer a life-threatening concern, it still haunts us with its long-term effects, such as inflation and economic uncertainty. The IMF forecasts that one-third of the world's economy will be in recession in 2023.

Considering various scenarios for how severe the looming recession will be on a global scale, the growth of the labor market in the US hints that the worst of the downturn is yet to come; we are still away from the peak of the recession. Yet, it is clear that the fragile outlook keeps challenging many industries, especially consumer durables.

No room for despair

As 2023 dawns, the ‘permacrisis’, the word of the year, which means an extended period of instability and insecurity, will be here to stay.?

For sure, there's a lot to be concerned about with the current state of the world, but when despondency takes over, apathy can set in too. No matter how challenging the new year will be, I am on the side of being stubbornly optimistic about the future.

Why? There are sufficient grounds for optimism.

Even though 2022 was hectic, it's been a year, too, with lots of progress, giving us hope for the upcoming one.

The triumph of renewables: Renewable energy development sped up as countries look to boost their energy security. 2023 will be no exception. Renewables met the rise in global electricity demand in the first half of 2022. Increased solar, wind and hydroelectric power generation prevented a potential 230 million tons of CO2 emissions from being released into the atmosphere —the equivalent of removing more than 49 million gas-engine cars off the road for a year.

Furthermore, global solar PV installed capacity is estimated to almost triple over the 2022 -2027 period, surpassing coal and becoming the world’s largest source of power generation. Unbelievable but true: we have enough solar panels installed worldwide to generate one terawatt of electricity from the sun, which is enough to power the whole of Europe.

Over the next five years, renewables are set to account for over 90% of global electricity expansion, overtaking coal to become the largest source of global electricity by early 2025.?With the accelerated adoption of renewables, hopefully, the world will be on a path consistent with the ambition of achieving net zero emissions by 2050, keeping hopes alive to limit warming below 1.5 °C.

Binding policies to support clean energy transition: Fossil fuel supply disruptions brought to light the energy security benefits of domestically generated renewable electricity. But this year, it was promising to see many countries strengthen their policies supporting renewables. As one of the most significant pieces of legislation in US history, The Inflation Reduction Act is solid proof of that. The Act aims to reduce carbon emissions by roughly 40 percent by 2030. In addition, as a first-of-its-kind deal, the EU will impose a green tariff on imports of high-carbon commodities. The Carbon Border Adjustment Mechanism aims to prevent companies from shifting polluting activities to nations with laxer environmental regulations. It will initially cover carbon-intensive industries like iron and steel, cement, aluminum, fertilizers, and electricity production.

Nuclear fusion - hype or hope?: While there have been remarkable discoveries in the fight against climate change, scientists recently hit a crucial milestone in the quest to generate abundant zero-carbon power through nuclear fusion. For context, fusion reactions emit no carbon and produce no long-lived radioactive waste; a small cup of hydrogen could power a house for hundreds of years.

Despite being in the early stages, it’s incredibly thrilling to witness such a breakthrough that would transform the way we generate and use energy. The US plans to build a commercial nuclear fusion power plant in the next few years, while the UK has pledged that the world's first commercial nuclear fusion reactor will be up and running by 2040.

Businesses are eager to take the lead: There have been some fascinating news. One of the largest banks, HSBC, will no longer fund new oil and gas fields. Earlier this year, Lloyds - Britain's most prominent domestic bank - barred project financing or reserve-based lending to greenfield oil and gas projects.

There has been exciting progress in sustainable technologies as well. Rolls-Royce and EasyJet have set a world first for the aviation industry by testing an aircraft engine powered entirely by green hydrogen created by wind and tidal power. I hope this trend will continue for years to come.

Also, it is encouraging to see that more companies have pledged to net zero targets: more than one-third of the world's largest publicly traded companies now have net zero targets, up from one-fifth in December 2020.

2023: a fresh start to move forward

I know that the start of a new year will not magically transform who we are and how we feel, yet it also provides a sense of a fresh beginning, a convenient jumping-off point for making positive changes in one's life.

Before wrapping up, as my new year's resolution and guided by the wisdom that 50 years of age brings, I will boldly reflect on the lessons learned and apply them to the future.

My main drive in elevating sustainability to one of the top items on the business agenda will continue at full pace, and I won’t stop.

Being intertwined with nature will continue to be an irreplaceable part of my life in 2023, and embarking on a new mountain expedition that will purify me mentally and physically will continue to inspire me further.

This year also witnessed one of the most emotional occasions of my life. After years of persistent efforts, we launched UPL, a dedicated underwater archeology research vessel. Next summer, we will commence excavation and research on the world's oldest known wreck, at 3,800 years old. As it keeps excavating to protect humanity's underwater archaeological heritage, we will shed light on the history of trade, economics, and culture.

Over the past 50 years, I’ve come to appreciate the time spent with loved ones more and more as the genuine source of riches, and I will continue to prioritize my family and my friends for the rest of my life.

As I get on in years, I've better understood that the heart and logic readily go hand in hand. With time has come a greater acceptance of who I am as I endeavor to do my part to make the world a better place. I wish you all to feel a greater sense of purpose and acceptance as you open a new chapter in the new year.

Happy New Year to all!