In this episode our co-host Paul Diggle chats with Jeremy Lawson and Anna Moss about the impact of the energy transition in Asia. 

The key takeaways are:

·         The Asia Pacific region is a crucial battleground in the world’s fight to decarbonise. Over the past 20 years, almost all the net increase in global emissions has come from APAC. That means it’s a region replete with investment opportunities and challenges as part of the energy transition.

·         abrdn’s climate scenarios forecast impairments of indices, sectors and companies through the energy transition. We use bespoke scenarios to include a range of realistic paths for carbon prices, emissions, technological change, and the global temperature rise.

·         APAC equity index impairments are larger than the global average because of bigger shares of energy, materials and consumer discretionary sectors. But in Chinese specifically, the index has a low negative exposure to the energy transition because many large emitters are not publicly listed. In all cases, the impact of the energy transition is primarily a security level phenomenon, making climate scenario modelling a crucial factor in stock selection.