Equities

The European Green Deal and COVID-19 Recovery Package

The European Union is set to officially present a recovery package next week on May 27th, with a focus on the EU Green Deal – an economic rescue plan aimed at generating jobs and private investment across the continent, while also integrating into the package policies geared towards reaching net zero greenhouse gas emissions by 2050.

Prior to the crisis, the European Commission had calculated that EUR 260 billion of additional annual investment was required to reach its 2030 emission goals, on the path to the net zero target.

Despite calls from some leaders to forget the EU Green Deal and focus instead on the virus, the EC has continued to reiterate its commitment to the Green Deal as being central to the recovery and reconstruction package. Earlier this week, a draft, unofficial document detailing the green recovery plan was published.

Considering this level of political support, we wanted to consider which sectors may stand to benefit from such green-focused policies, including renewables, building renovation and clean mobility. You can trade ESG stocks on Marketsx with ESG ETFs, as well as our unique ESG Leaders Blend.

Renewable energy

The goal of reaching net zero greenhouse gas emissions by 2050, as outlined above, could drive earnings growth for those utility companies with existing and scalable exposure to renewables in their power generation mix, and to those that are developing such exposure.

Two key renewable energy sources are wind and solar, which combined (Captain Planet, anyone?) form a complimentary mix: solar generation is largely during the sunnier, longer days in summer, while wind produces most in the winter months and typically peaks at night.

Screening for utilities with strong balance sheets could indicate that they have capacity for additional investment and growth in renewable energy sources.

Apart from decarbonising the power generation mix in a move to renewables, energy demand may also increase because of other measures, further accelerating growth in the sector.

For example, the use of electric heating in buildings is low in Europe, with the majority being gas or oil heated. Switching to electric heating, where electricity production comes from clean sources, could lower emissions while increasing power demand.

Increased use of electric vehicles could also contribute to growing power demand. It may also require the deployment of charging stations to facilitate long distance travel, where utility involvement could come in too.

Furthermore, it is not only utilities that stand to benefit from renewables growth, but also those companies involved in providing the infrastructure for renewable electricity generation and transmission.

Cleaner transport

Automobile manufacturers with a focus on battery electric vehicles (BEV) may stand to benefit from the green recovery plan. For example, consider a situation where public money is spent on subsidies that would reduce the cost for firms, or indeed cities, to cut emissions by converting vehicle fleets from combustion to electric engines.

A boost for public transport investment could have a significant impact on businesses in the sector. The report flags the importance of the European rail supply chain and supporting it and the businesses involved while it faces increased competition from China.

It is also worth noting that Volvo and Daimler recently announced a joint venture to develop and commercialise clean hydrogen technology for the truck market.

Building renovation

According to the leaked report we referenced above, buildings consume the largest amount of energy in the EU and are responsible for 36 percent of EU greenhouse gas emissions.

As previously discussed, a switch to electric heating could help in lowering emissions associated buildings.

Construction exposed companies could also be worth monitoring, such as those related to heating, ventilation and air conditioning, lighting, and electrical, as buildings are targeted for renovation to make them more energy efficient.

Neueste Marktmeldungen

OPEC meeting weighs on crude oil ahead of US EIA inventories data

Read More

Stocks grind higher, dollar squeeze continues

Read More

IPO market coming back to life?

Read More

OPEC meeting preview: record production cut to be extended?

Read More

Stocks nudge up, GBP breaks higher

Read More

May’s top Blends: Einhorn rises, Corona falls

Read More

Stocks rally, dollar offered, OPEC meeting may be brought forward

Read More

Week Ahead: Central banks on tap, NFP faces massive Covid hit

Read More

ECB preview: Welcome to Japan?

Read More
Previous
Next

Mitmachen bei Markets.com und Marketsx kennenlernen

Markets.com ist die hochmoderne Tradingplattform von Markets.com. Als Teil der TradeTech-Gruppe, die zur im FTSE 250 gelisteten Playtech gehört, besitzen wir bei Markets.com umfassende Kenntnisse der Finanzmärkte und eine unglaubliche Bandbreite an Ressourcen. So können wir in der Welt des Finanzhandels ständig neue Maßstäbe setzen.

Konto einrichten

CySEC (Europa)

Produkte

  • CFD
  • Aktienhandel
  • Strategy Builder

  • Kundengelder werden in getrennten Bankkonten geführt
  • FSCS-Anlegerentschädigung bis zu 20.000 EUR
  • Schutz vor Negativsaldo

Markets.com, betrieben von Safecap Investments Limited („Safecap“) Reguliert von der CySEC unter der Lizenznummer 092/08 und von der FSCA unter Lizenznummer 43906.

FSC (Weltweit)

Produkte

  • CFD
  • Strategy Builder

  • Kundengelder werden in getrennten Bankkonten geführt
  • Elektronische Bestätigung
  • Schutz vor Negativsaldo

Markets.com, betrieben von TradeTech Markets (BVI) Limited („TTMBVI”) Besitzt eine Lizenz der B.V.I Financial Services Commission („FSC“) mit der Lizenznummer SIBA/L/14/1067.

FCA (Britische)

Produkte

  • CFD
  • Spread-Wetten
  • Strategy Builder

  • Kundengelder werden in getrennten Bankkonten geführt
  • FSCS-Anlegerentschädigung von bis zu 85.000 GDP. *Abhängig von Kriterien und Teilnahmeberechtigung
  • Schutz vor Negativsaldo

Markets.com, betrieben von TradeTech Alpha Limited („TTA“) Reguliert von der Financial Conduct Authority („FCA“) unter der Lizenznummer 607305.

ASIC (Australien)

Produkte

  • CFD

  • Kundengelder werden in getrennten Bankkonten geführt
  • Elektronische Bestätigung
  • Schutz vor Negativsaldo

Markets.com, betrieben von TradeTech Markets (Australia) Pty Limited („TTMAU”) Hat bei den Australian Financial Services die Lizenznummer 424008 und wird von der Australian Securities and Investments Commission („ASIC“) reguliert”).

FSCA (Afrika)

Produkte

  • CFD
  • Strategy Builder

  • Kundengelder werden in getrennten Bankkonten geführt
  • Schutz vor Negativsaldo

Markets.com, betrieben von TradeTech Markets (South Africa) (Pty) Limited („TTMSA”) Reguliert von der Financial Sector Conduct Authority („FSCA“) unter der Lizenznummer 46860.

Nach der Auswahl einer dieser Regulierungsstellen werden die entsprechenden Informationen auf der gesamten Website angezeigt. Für weitere Informationen bitte hier klicken.