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Insights

Zaree Enters London to Support the Energy Transition 
Published: January 2022

 

The next thirty years will change our world as we know it and an important dimension in this great development will be in the energy transition and to optimize the infrastructure to be aligned with faster, sustainable, and more reliable systems.

We are at the beginning of the great transition, for cleaner, renewable, and for sustainable social impact. The focus on renewables has become greater recently as the global leaders have pledged to reach net-zero emissions by mid-century. Policies, support, regulations, and cultivating and educating societies into the transition will set the conditions for the path towards a sustainable system alongside growth and prosperity.

 

There has been some color of a pessimist as critics have continuously pointed out that less rhetoric, more action, to fight our habits and the fear of change in order to reach the net-zero by 2050 and to limit the rise of global temperature to 1.5 °C.

 

What's also important to remember in all of this is that the energy transition gives hope for price stability. As a cleaner, renewable energy production will become each country's domestic priority; industries and households will be able to find comfort in a more predictable energy price rather than being impacted by supply disruption, geopolitics, markets, temperature, black swans, and other unpredictable events that create price volatility in the energy market.

01

Zaree´s role and focus

Our firm has an important role and niche in energy transition and infrastructure technologies. We aim to work closely with policymakers, officials, entrepreneurs, markets, industries, and global investors. Our mission is to help companies within our lens of focus to find the investments they seek, the experts, and the strategies to grow and expand geographically.

 
Rush Hour

02

An attractive jurisdiction

Despite Brexit, we still believe that the UK market has proven to be resilient and stay as a highly competitive and attractive jurisdiction for investors and entrepreneurs from all over the world to meet and jointly achieve the great transition. One of our partners in the UK is led by a dedicated and highly proficient team building UKs first Gigafactory in Northumberland. Our partner, Britishvolt will have a significantly important role to support and provide premium batteries for UKs OEMs.

We look forward to partnering with more EV battery-producing projects as we move in this new year of 2022. What's also positive is that the UK has given the green light on new technologies in the field of advanced nuclear reactors (ANRs) as more countries start to add ANRs to their sustainable portfolio. We believe that there is a need for investments in stable energy which could be produced from small modular reactors (SMRs), the fourth generation reactors (Gen IV) which will be small, smart, modular, cost-efficient, and sustainable. Other important technologies such as batteries and the storage of electricity will play an important role in this transition. The UK Infrastructure Bank and the government is highly dedicated to taking the steps to make the UK become a competitive nation in the energy transition and infrastructure technologies.

 
Night Lights

03

What needs to be done

We believe that we have just entered into the momentum of this supercycle which creates opportunities for every party who chooses to join and support this transition. What we must remember is that the energy transition combines several barriers that need to be emphasized and to understand the proper environment for it to grow and be successful. The transition will not only be technological, it will require a combination of economic, political, institutional, and social-culture changes. The energy transition has to start by changing the narrative and the ethical framework that sets the common understanding of governance, technology, and sustainability. This transition starts from the very top to the bottom of our system, everyone must be included and contribute to the transition.

There is a very clear and great technological gap between nations. The future portfolios and sufficient diversification of advanced technologies and energy resources in nuclear and renewable energies is and will increase to become the largest reasons for the greater gap between economies. Economies will have to focus on fuel efficiency which stands for 45% of the total emissions reductions, carbon dioxide capture and storage (CCS) and renewables account for 64% of the reduction potential by 2050. Every party who has accepted the challenges is convinced that the transformation of the global energy sector is at the core of achieving emissions reductions. To do so the policies must be fair and the distribution of technology and funding must be in place to benefit every economy that participates in COP26. We hope that we will not have the same protectionism scenario that overshadowed our world for not that long time ago.

Costs and prices alone will not only determine the structure of the energy transition generation. What will set the core for the structural transition generation is a series of institutional, behavioral, and cultural factors that will take an important role in technology development and proliferation. In order to open the step forward for sustainable development in the great transition, governments need to understand the liberation of energy markets, to be more open and free, to take policies that include, improve, and motivate the market to invest in research and developments. It's important to remember that governments play an important role in creating the fundamentals and enabling the conditions for new technologies to emerge.

 
Wind Mills

04

The maze in sustainable investments

Sustainable investment is a great maze that needs to be solved. Investors have difficulties understanding how to evaluate opportunities but foremost what the frameworks are, there is no global standard to provide guidance to the market. We may need an international committee to establish the standard which works for developed and developing economies with the purpose of qualitative reporting standards.

 

There is a need to understand what the best conditions are for the investors seeking to invest and to build their renewable portfolio standards (RPS). This has to become well-aligned and established from the very beginning to keep the growth and to attract investments and innovators to join the transition in a business appealing environment.

What we are experiencing is a supercycle, the great transition that is in its first steps to grow to become a mature cycle. Such great transitions often frighten policymakers from taking the steps to experiment in new fields of policies. On the other hand, we will experience negative results or even worse backfires from overhyped projects which often start from leaders and policymakers in desperation to manage not to fall behind everyone else. The policies and investments have to be made in balance to realistic achievements, each economy has its own obstacles to tackle, and each nation must understand how to apply policies to get the best result in the long run.

 
Pillars of Justice

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Conclusion

The economies that choose to make the “great leap forward” will sacrifice huge losses, and the others who fall behind with zero action will find themselves in a position where they will lose years of growth and development as innovative policies are necessary to promote and stimulate the transition. Unfortunately, there are additional errors in the system as policymakers are influenced by industrial and political interests which could on some occasions lag or hinder the process towards a fast and smooth transition. Our firm has a clear goal to fill the gaps, to shed some light on the solutions, create insights, match the proper financing with the investment needs, participate, and contribute to the century's greatest transition that mankind experiences.

Organization: Zaree & Partners Ltd

 

Published: January 2022

Updated: N/A

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Moses Zaree

Partner & CEO