Alert iconWarning: Unsupported web browser

In View no longer supports your current web browser version, which means some functionality may be limited. Please update your browser for the best experience before you log in.

close icon
Citi Private Bank logo

Unsupported browser

Our website no longer supports your current web browser version, which means you are no longer able to access this website. Please update your browser to continue.

Continue
Sustainable investing
September 8, 2021
2 mins

Unstoppable trends: Examining the future of energy

September 8, 2021
2 mins
Philip Watson
Chief Innovation Officer, Citi Private Bank
SUMMARY

As the global economy recovers from the pandemic, an unstoppable energy sector transition – driven by market forces and not just government mandates alone – is powering us to a low-carbon future.


The world’s energy mix is currently undergoing profound changes. Incremental electrification of the developing world, proliferation of electric vehicles in major markets, rising climate change awareness and public clamor in favor of reducing reliance on fossil fuels have been very visible for the past few years.

As this palpable drive was gaining traction, the outbreak of the COVID-19 global pandemic towards the end of the first quarter of 2020 also caused sudden shifts in near-term crude oil demand on an unprecedented scale. At Citi Private Bank’s Office of Innovation, we believe the wider market and our clients need to confront some searching questions at this critical juncture for the energy sector.

Cognizant of this pressing need, our latest whitepaper – Unstoppable trends: Examining the future of energy – attempts to address how the world powers itself in the coming decades. An unstoppable energy transition is afoot, and market forces – rather than government mandates alone – are now powering the switch from fossil fuels to renewables.

The journey forward is going to be about reimagining and rebuilding by investing in the spirit of human ingenuity. The investment case for renewables has become even more compelling as the global economy recovers from the COVID-19 downturn.

For nearly a hundred years, economic growth and fossil fuel consumption have been inextricably linked. But that bridge has been broken, and this paper is our attempt to demonstrate how the current wave of new energy solutions could soon swamp the fossil fuel sector.

In the energy production space, we do not see a single winner but instead view price as the ultimate winner. As such, we see solar, wind, geothermal, biomass, hydro, tidal and other renewable mediums scrambling for pieces of the once mighty fossil fuel empire, as hydrocarbon producers gradually move away from focusing on human mobility and ground transportation to petrochemicals and aviation.

Ultimately, the inexorable direction of travel towards a low-carbon future is becoming clearer. As an investor, getting exposure to unstoppable trends in the energy sphere in this changed landscape could be critical. We hope this paper proves to be an informative guide and assists you in that objective.

Insights

See our insights and the issues that matter for your wealth. 

View all insights

Insights

See our insights and the issues that matter for your wealth. 

View all insights