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Goldman Sachs Exchanges

Emission Control: The Expanding Low Carbon Economy

Goldman Sachs Exchanges

Julia McGonagle

Business

4.41K Ratings

🗓️ 12 August 2016

⏱️ 19 minutes

🧾️ Download transcript

Summary

Until recently, low carbon technologies like wind and solar were a niche part of the global energy landscape. But Goldman Sachs Research's GS SUSTAIN team, which focuses on identifying long-term industry leaders, says that low carbon technologies like onshore wind, solar PV, LEDs and hybrid/electric vehicles are now "taking off the training wheels" and rapidly gaining share. According to GS SUSTAIN's Jaakko Kooroshy, these four technologies not only could help global carbon emissions peak as early as 2020, versus mainstream expectations of a peak closer to 2030-they're also poised to reshape competitive dynamics across the global economy. This podcast was recorded on July 11, 2016. All price references and market forecasts correspond to the date of this recording. This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this podcast does not constitute research or a recommendation from any Goldman Sachs entity to the listener. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefor (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. The views expressed in this podcast are not necessarily those of Goldman Sachs, and Goldman Sachs is not providing any financial, economic, legal, accounting or tax advice or recommendations in this podcast. In addition, the receipt of this podcast by any listener is not to be taken as constituting the giving of investment advice by Goldman Sachs to that listener, nor to constitute such person a client of any Goldman Sachs entity. Copyright 2016 Goldman Sachs. All rights reserved.

Transcript

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0:00.0

This is exchanges at Goldman Sachs where people from our firm share their insights on developments

0:13.4

currently shaping markets, industries, and the global economy.

0:16.5

I'm Jake Stewart, Global Head of Corporate Communications here at the firm.

0:20.3

Last December, 195 countries came together in Paris to strike a landmark climate change agreement.

0:26.0

The deal's ambitious targets to reduce greenhouse gas emissions are adding to the global push for a low-carbon economy that is less dependent on fossil fuels.

0:35.0

To discuss the technologies making this possible and the implications for existing industries,

0:39.6

I'm joined today by Yako Karoshi of Goldman Sachs Research.

0:42.8

Yako, welcome to the program.

0:44.0

Thank you very much.

0:45.0

Yako.

0:46.0

To kick it off, where are we in the transition to the low-carbon economy?

0:49.0

If you go back to the 1990s, when a lot of the development started around this.

0:55.8

We really didn't have any low-carbon technologies.

0:59.7

It's a big debate about what to do about climate change, but not a lot of technological solutions.

1:04.1

Absolutely we didn't have low-carbon sources for power generation

1:07.6

other than hydro nuclear at the time. We were far away from alternative sources in lighting.

1:14.0

We didn't have the prospects even of alternative vehicle technology.

1:18.0

We think we're now at an inflection point.

1:20.0

And the reason for that is that we think that low-carbon technologies are now taking off the training wheels.

1:26.0

So there are select technologies out there, not all of them, but some of them, that are now rapidly gaining scale and taking market share in things like lighting, power generation, autos.

1:39.0

And we think that is changing the way that powers generate, the way it's stored, the way it's

1:47.0

consumed, and that taken together, that's what we describe as the low carbon economy.

...

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