You’ll never hear my readers and I say “I told you so.”
Make no mistake, it’s incredibly tempting to do so whenever you see the world carve its aggressive climate goals into stone. For decades, countries have been setting targets and laying out promises of a future with zero emissions.
What’s the reason for our skepticism?
Well, it all comes down to the real question: How?
You see, transitioning to a green-fueled world was never in doubt — even the staunchest oil executives will confess that much.
And for us, greenwashing the world’s energy landscape is inevitable.
It makes sense, doesn’t it? By definition, our nonrenewable sources of energy today will eventually be depleted.
However, there are certain realities you have to embrace for that transition to truly take place.
Last July, the EU formally adopted its European Climate Law, which set a goal of reducing Europe’s net greenhouse gas emissions by at least 55% by 2030 (compared with 1990 levels, of course).
Its ultimate objective is to hit net-zero emissions by 2050.
Too lofty of a promise? Not exactly.
The only problem is that right now, the EU is stuck between a hard rock and a reactor.
Stuck Between a Hard Rock and a Reactor
Close your eyes and think of an EU with net-zero emissions.
What do you see?
If you’re like most investors, you see solar and wind farms that stretch as far as the eye can see.
And in many ways, you’d be right to think that way. Solar and wind energy will continue to grow at phenomenal rates going forward.
In fact, last year was the first time in history that renewable energy generated more electricity than fossil fuels in the EU. Renewable sources accounted for 38% of electrical generation, barely beating out the 37% produced by fossil fuels.
In 2020, solar and wind generation grew by 9% and 15%, respectively, compared with the previous year.
That’s great news, no matter how you look at it.
But you know what?
It wasn’t enough!
Despite coal generation in the EU being cut in half since 2015 and strong growth in wind and solar generation, the EU will never achieve its 55% target by 2030.
So what can it do?
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Well, desperate times call for desperate measures.
When we first read through the European Climate Law, the immediate thing that came to mind was “You’ll never do it without nuclear power.”
Yet whenever you hint at more nuclear power, the response is always negative.
Unfortunately, there is still a powerful stigma surrounding the nuclear industry. Ask a friend what they think of when you say “nuclear power,” and instantly their minds will be filled with images of mushroom clouds and catastrophic meltdowns.
So when the most recent proposals to label nuclear energy as a green energy came out of the EU, you can imagine the response it got.
I’m not here to tell you whether or not it’s a truly green energy, but there are certain realities that we can’t ignore.
First and foremost is the massive investment that the world must pour into nuclear power if it wants any shot at hitting its emission targets. In the EU, for example, approximately US$586 billion will have to be invested in nuclear energy to truly achieve carbon neutrality.
Now, as an investor, here’s the real catch…
Greenwashing nuclear energy comes with another major catalyst — it opens the door for money that otherwise would go to renewables.
Like I said, you’ll never catch us saying “I told you so.”
But the smart money knows that the real opportunity isn’t in building tomorrow’s next-gen nuclear reactors — it’s going to be in fueling them.
Let me show you exactly why right here.
Until next time, Keith Kohl A true insider in the technology and energy
markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new
technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the
Managing Editor of Energy & Capital, as well as the
investment director of Angel Publishing’s
Energy Investor and Technology and
Opportunity. For nearly two decades, Keith has been providing in-depth coverage of the hottest
investment trends before
they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution
currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on
key advancements in robotics and AI technology. Keith’s keen trading acumen and investment research also extend all the way into
the complex biotech sector,
where he and his readers take advantage of the newest and most groundbreaking medical therapies being
developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s
to lab scientists grinding out the latest medical technology and treatments. You can join his vast
investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.