Millennials and the Financial Impact of the Energy Transition
by Dan Carreno, Executive VP of Business Development, Change Finance
It is from my perspective as an older Millennial, that I tend to fret over the implications of the next dramatic economic and cultural shift our generation will experience: the energy transition. The world is ready to abandon the foundation of modernity, fossil fuels, and embark on a journey toward an electrified future powered by renewable energy. And similar to the information technology revolution, this comes with enormous financial implications. In the last transition, Eastman Kodak gave way to Apple while Circuit City and Borders crumbled before Amazon. Vast sums of wealth were wiped away in one part of the economy while fortunes were created in others. History tends to repeat itself, and one must wonder if the millennial generation is adequately prepared for the next great economic upheaval.
In all likelihood, the energy transition is coming faster than we anticipate. Consider that wind and solar are projected to be the least expensive forms of energy generation everywhere in the world by 2030. That’s the same date that the global fleet of internal combustion engine vehicles begins to shrink due to the electrification of transport. And that’s just what market forces have in store for us. Humanity is waking up to the dire implications of the climate crisis. On our current trajectory, we will warm the earth by 4℃, leading to global crop failures and mass migrations. This sobering reality makes government policy responses inevitable and destined to accelerate the energy transition.
While the convergence of market and political forces to stem the tide of climate change is undoubtedly welcomed by most millennials, a poorly managed energy transition poses significant threats to the stability of financial markets.
Where does this leave millennials, actually all of us?
Dan answers this question and many others in his full post at- https://greenmoney.com/born-ready-millennials-and-the-financial-impact-of-the-energy-transition
GreenMoney is the winner of 5 awards in the last 2 1/2 years. The biweekly eJournal and (new) Podcast on Sustainable Busienss and Impact Investing has been publishing since 1992.