Too sharp start of combating hydrocarbon consumption in order to reduce emissions and transition to another type of world energy can seriously harm the green future of the planet. About this in his article on Financial Times, the head of the Developing Market Markets of Morgan Stanley Investment Management Ruchir Sharm was stated.
In his opinion, the fight against oil investments, gas and other industries with a high level of emissions threatened to make the achievement of the goals set much more expensive. The problem is that the materials necessary for the transition take off in price.
For example, renewable energy sources depend on copper, aluminum, lithium. Solar power plants consume six times more copper than traditional. And it turns out that than such metals are more expensive, the higher in the price of safe energy.
Sharma leads as an example of the situation around the copper mine in Alaska, the construction of which the activists blocked due to concerns about the effect on local communities and salmon population.
Metal supplies from Latin America were also more difficult. So, in Chile this year, two new environmental rules adopted, which are able to make unprofitable several major mines. In Peru, one of the projects could not be completed due to the pressure of the population. Meanwhile, to stop global warming, the world needs a greater amount of copper.
China in a desire to fit into new environmental norms sharply reduced the production of aluminum, but the metal is very in demand in the green energy. As a result, according to the World Bank forecast, the demand for him in the coming years will sharply increase.
According to the analyst, to achieve goals in the green economy will have to look for balance and finance dirty industries. Refusal of investment in them is fraught with a failure in the construction of new stations, and therefore, in the development of energy without emissions.
Earlier, the Prime Minister of the Federal Earth Mecklenburg – the front Pomerania Manuel Schweger supported the construction of the North Stream-2 gas pipeline. According to her, the rejection of the project would threaten the reliability of the country’s power supply and the transition to alternative energy.