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August 2022 | Did someone forward you this email? Subscribe Here

A Better Future Planet:
Urgent need to reduce Emissions

There is no doubt that Climate Change is one of the major challenges of our time. Sadly the situation is not improving as we would hope, with the nine years from 2013 through 2021 ranking among the 10 warmest years on record.

Human activities continue to be the main driver, primarily due to burning fossil fuels like coal, oil and gas which generates greenhouse gas emissions. These emissions act like a blanket wrapped around the Earth, trapping the sun’s heat and raising temperatures.

According to the United Nations, the richest one percent of the global population account for more greenhouse gas emissions than the poorest 50 percent. Energy, industry, transport, buildings, agriculture and land use are among the main emitters - as we know from our newly established Blue Ocean fund, 6% of GHG emissions are also from Ocean methane.

Emissions continue to rise and, as a result, the Earth is now about 1.1°C warmer than it was in the late 1800s.

Temperature rise is only the beginning of the story. Because the Earth is a system, where everything is connected, changes in one area can influence changes in all others. The consequences of climate change now include intense droughts, water scarcity, severe fires, rising sea levels, flooding, melting polar ice, catastrophic storms and declining biodiversity.

According to a report by German insurer Munich Re, extreme weather events amplified by global warming have caused about $65 billion in losses in the first half of this year, half of which affected uninsured assets. The list includes winter storms in Europe, earthquakes in Japan, floods in Australia, tornados in the US and heatwaves in most of the world.

The Covid-19 pandemic initially resulted in a short-term reduction in emissions and reports suggest that a number of countries, including Germany, UK, Sweden and Spain, are increasingly generating electricity from renewable sources rather than from fossil fuels. This is positive, but it is clear that there is a lot more that can - and needs to be done - in this area. AI and hardware increasingly drive both investor value and impact.

At FPC we're particularly looking at investments around the Blue Ocean, renewables and electric vehicles. With the support of clients like the Government of Monaco and the Prince Albert Foundation, we have up to 400 companies within our universe that are tackling the global challenge of climate change. We're pleased to share more information and insight with you through this newsletter.

Anne Olhoff, Head of Strategy for Climate Policy and Planning at UNEP DTU Partnership, explains the main findings of the 2021 Emissions Gap Report

FPC's Focus on Tackling Climate Change

Future Planet, working in partnership with scientists and founders emerging from the world’s top universities, is seeking those companies best able to meet this challenge and address the $50 trillion market opportunity created by the challenge of climate change.

The very essence of capitalism is to make more from less and the essence of responsible capitalism is to reduce unnecessary consumption and waste. A sustainable approach to emissions, consumption and the environment is not only profitable but will reduce untold suffering for billions of humans and their fellow creatures.

Future Planet brings together the world’s leading thinkers in these spaces and identities companies in focus areas most likely to make a valuable difference to climate change, reducing our environmental footprint and husbanding bio-diversity. Read below our top three insights for reducing emissions in the future.

1. Carbon Capture & Storage "CCS"

A term that refers to technologies that capture the greenhouse gas carbon dioxide and store it safely underground, so that it does not contribute to climate change. Also known as carbon capture, use and storage, it can provide a key contribution to tackling emissions from energy intensive sectors. Furthermore, it can help removing carbon from the atmosphere through carbon removals such as bio-energy carbon capture and storage (BECCS) and direct air carbon capture and storage (DACCS) and be a platform for low-carbon hydrogen production.

2. Methane Reduction

Methane emissions from human activity are the second-largest driver of global warming, accounting for roughly 30 percent of the temperature increase from preindustrial levels. Curbing emissions of methane, therefore, will be critical to solving the net-zero equation—that is, reducing GHG emissions as much as possible, and counterbalancing any remaining emissions with GHG removals—and stabilising the climate. The five industries, which together account for 98 percent of humanity’s methane emissions, are agriculture, oil and gas, coal mining, solid-waste management, and wastewater management.

3. Longer term... fusion and hydrogen

Many experts see fusion and hydrogen as the clean fuel of the future. It is expected that both energy sources will play a major role in decarbonizing the industrial sector. The benefits of fusion power, such as abundance, lack of carbon emissions, and energy efficiency make it an extremely attractive option. The addition of carbon capture makes the hydrogen production process nearly emissions-free, when clean electricity is used to power the carbon capture facility.

Climate change technology: is shading the earth too risky?
| The Economist

Challenge Investing

Within our universe, we have a significant number of companies that are helping to profitably address this significant and vitally important global challenge. If you’d like to invest in some of the most promising growth companies based on top research then please don't hesitate to get in touch.

Want to know more?
Contact Abi Wye at Future Planet Capital.

This monthly digest is brought to you by Future Planet Capital.

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