Moving away from fossil fuels is becoming more real, and the transition to renewable energy is getting closer. Recently, the UN released a major report on climate change, with a key takeaway that unless humanity drastically reduces the use of coal, oil and gas in the coming years, the consequences for the environment will be catastrophic.
To battle climate change, the governments of the United States, the European Union, China and other countries have adopted policies to limit carbon dioxide emissions. One of the vital points is the replacement of vehicles (buses, heavy trucks, etc.) with internal combustion engines for electric ones. In early August, US President Joe Biden signed a decree that half of the cars sold in the US should be electric by 2030.
Although the decree is advisory in nature, it was supported by many world auto concerns. General Motors and Ford Motors in a joint statement promised to increase the share of electric vehicles to 40–50% by 2030, the same goal is pursued by Hyundai and Nissan. Audi intends to completely stop selling cars with internal combustion engines by 2033. There are also manufacturers who rely solely on electric vehicles, such as Tesla or LiAuto.
There are also a lot of startups developing technologies in the field of renewable energy. According to BloombergNEF, in the first half of this year, venture and private equity investments in renewables and storage startups escalated by 111% to $5.7 billion.
Clients of the GTPP fund can purchase StoreDot shares, an Israeli company that develops batteries that charge electric vehicles in just 5 minutes. The company is backed by British Petroleum, Daimler AG, Samsung Ventures and Roman Abramovich’s Millhouse LLC.