The fast view
- China’s surprise pledge in September to cut its net carbon emissions to zero within forty years has reignited hopes of limiting global climate change to tolerable levels. These hopes were reinforced a month later at China's fifth plenum, which revealed the government's long-term development plan for the country — its 2035 vision.
- Achieving net zero would require a radical reconfiguration of China's economy, with significant investment implications.
- On the one hand, there are growth opportunities as enablers of carbon neutrality become increasingly important. On the other, companies that don’t adapt to a greener world could be left behind.
- We’re excited by these developments as they show how serious China is about reinvigorating action on climate change. This structural shift means huge potential across China’s equity universe – the key will be knowing how to pick the winners, and how to ride this wave of change.
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The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made.