“Fossil Fuel Must Stay Underground!” – Climate Change Investment Opportunity

Published on: Sep 14, 2021
Author: Amy Liu

Stopping Climate Change by Not Using Fossil Fuels Leading to Climate Change Investment Opportunities

Unprecedented heat waves, extreme drought, and a record-breaking wildfire season wreaked havoc across the globe this summer. And according to a landmark IPCC climate change report, the situation is only going to get worse.

To ward off the worst effects of global warming, scientists have agreed that limiting rising temperatures to no more than 1.5 °C is the best, if not the only option. To meet that strict target, researchers behind a recent fossil fuel study say approximately 60% of oil and gas reserves and 90% of coal must remain in the ground.

According to the study, to reduce greenhouse gas emissions by the amount needed to achieve the 2050 net-zero emissions goal, most regions need to have peaked oil and gas production now or very soon while continuing to reduce emissions by 3% year going forward.

This latest assessment leaves much less room for the necessary reductions than previously estimated, and for countries still dependent on fossil fuels, this news may be tough to swallow. However, experts agree this is “what the science tells us is needed.”

The current situation means a lot is riding on the upcoming COP26 climate change conference, scheduled to begin later this year. The summit will attempt to unite global leaders in the fight against global warming, looking for consensus on several key issues, including the phasing out of fossil fuels.

ESG Investing is the Growth Trend of this Decade

What’s good for society is apparently also good for investors. ESG investing, a set of investing principles that take into account a company’s environmental, social, and governance responsibility, has been attracting record inflows.

Despite the market turbulence witnessed throughout the Covid pandemic, ESG stocks have performed well, and in many cases, better than their non-ESG counterparts. This has peaked investor attention, taking ESG investment from fringe territory to mainstream.

Overall, ESG investments tend to experience less volatility. Companies that take a strong stance on environmental, social, and governance responsibility consider factors beyond simply generating returns when making corporate and financial decisions. This has allowed them to produce more stable financial results, reduce downside risk, and, at least for the moment, perform better than their non-ESG focused peers.

So far this year, index-tracking ESG funds have raked in over $97 billion, a sharp increase over the $89 billion invested in all of 2020. Before 2030 the head of iShares recently told reporters in CNBC interviews that he believes ESG investing could top $1 trillion.

For many investors, this strong performance serves to validate the belief that not only is socially responsible investing possible but companies who conform to ESG standards will be rewarded.

Saving Energy through Optimizing Heating and Cooling

While transportation may be getting the most climate change-focused attention, the combined energy consumption used in industrial, commercial, and residential buildings accounts for a significantly larger proportion of greenhouse gas emissions.

And one of the biggest energy drains for most buildings is heating and cooling systems, accounting for up to 50% of energy total consumption.

But one company, ATI AirTest Technologies Inc. (TSXV: AAT) (OTC Pink: AATGF), is helping many of the world’s largest corporations, like Lowe’s, Shoppers Drug Mart, Canadian Tire, and Ikea, tackle this problem head-on with innovative sensor technology that improves the energy efficiency and air quality in their commercial buildings.

AirTest’s proprietary technology offers a win-win solution for these companies – they can reduce their carbon footprint while also significantly reducing heating and cooling costs.

Grocery Stores Are Already Reducing Energy Consumption with Air Quality Monitoring Systems

AirTest sensors could prove particularly beneficial for large grocery store chains where commercial refrigeration systems account for up to 60% of total energy consumption. A recent EPA report suggests that these refrigeration costs could be reduced by as much as 14% by installing a high-efficiency data monitoring system.

One large UK grocery store chain has already invested in air monitoring technology and, as a result, has drastically cut its energy costs. Asda reduced its energy consumption by 5 GWH over five years and its C02 emissions by 1,100 metric tons.

But controlling excessive energy isn’t up to large corporations alone. According to the IEA, approximately half of the average energy consumption from commercial and residential buildings comes from heating and cooling systems – a number expected to climb as air-conditioning becomes increasingly used in emerging markets.

More consumers today recognize how their heating and cooling habits are contributing to global warming and are demanding green building solutions, like high-efficiency HVAC systems, as a means of reducing their energy consumption environmental impact.

AirTest Wins Large Purchase Orders

In July, AirTest announced that they had received large purchase orders from two OEM’s (Original Equipment Manufacturers) for a total of 2,275 CO2 sensors. The unnamed customers operate in the agricultural and industrial controls markets, providing essential components for greenhouse environments and irrigation systems, and other process manufacturers with systems meant to monitor and enhance production yields.

Carbon Dioxide (CO2) is essential in greenhouse growing as it promotes superior crop yields and faster plant production. However, to ensure employee health and safety, the OSHA (Occupational Safety and Health Administration) maintains strict guidelines for indoor air quality in these facilities. One way growers are ensuring they meet these standards is through CO2 sensors and control systems.

In a sector anticipated to reach $40 billion by 2026, greenhouse horticulture represents a potentially massive market for AirTest.

About ATI AirTest Technologies Inc.

ATI AirTest Technologies Inc. is a green-tech company focused on reducing the environmental impact of excessive global energy consumption with its suite of proprietary sensor technologies that help improve both energy efficiency and air quality. Motivated by green technology and the desire to provide cost-effective solutions, the Company has successfully installed thousands of its units in major retail chains like Canadian Tire, Ikea, Shoppers Drug Mart, as well as in enclosed parkades.

Expanding upon its existing product line, the Company is preparing to launch new wireless technology with enhanced capabilities. These innovative products will help reduce carbon emissions and improve air quality while providing a cost savings advantage that will make them attractive to both new and existing customers.

Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.

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