Please see the below article from Invesco and our own input following the article:
It’s Christmas. You’re sitting at home, marvelling at your lit up Christmas tree.
Have you ever wondered where the electricity that adds a magical sparkle to a simple pine tree comes from?
For the best part of the 20th century, electricity was generated by burning fossil fuels such as coal or gas.
The UK was the first country that burned coal to supply energy. And in the late 1980s, coal accounted for 60% of electricity production in the country.
But this has changed.
By 2020, this number had fallen to less than 2%. And much of this change was due to an increased awareness of the environmental impact of fossil fuel consumption.
With climate change high on the political agenda, countries all around the globe have set their eyes on renewable energy to supply people’s homes with electricity.
In a few years’ time, it may power those sparkling lights on your Christmas tree.
Our Comment
The conversations about Climate Change are not new, but over the past few years, they are more serious.
One of the key areas of ESG investing looks at the environment. What are we doing to reduce our carbon footprint?
There are five major renewable energy sources which are as follows:
- Solar energy (from the sun)
- Geothermal energy (from heat inside the earth)
- Wind energy
- Biomass (from plants)
- Hydropower (from flowing water)
They are called renewable energy sources because they are naturally replenished. The sun shines, plants grow, wind blows, and rivers flow.
People are also looking at new and innovative sources of energy, also known as ‘alternative energy’ sources.
Energy supplier EDF list the following ‘alternative energy sources’ which scientists are currently researching:
- Solar wind
- Algal biofuels
- Body heat
- Bioalcohols
- Dancefloors
- Jellyfish
- Confiscated alcohol
The possibilities could be endless, and it’s this research and visibility from articles such as this that may help change the attitudes and practices of how we source and use energy.
Andrew Lloyd DipPFS
29/12/2021