Carbon Transition Initiative: Challenges and Opportunities of Energy Transition in the Power Sector in Emerging Markets

This event is a continuation of the CTI webinar series highlighting the role of various sectors in carbon transition. At this webinar, a policy expert and an investor discussed the transition challenges and opportunities for the utilities sector using India as an example. You will learn more about the current state of affairs in emerging markets, their regulatory environment, and the future transition pathways.

Electricity generation is currently a significant contributor to GHG emissions. It is also a key enabler and driver of carbon transition. As the global economy moves toward electrification (for example, increasing use of electric vehicles, heat pumps, and other forms of substitution of fossil fuels by electricity as the source of energy), it is becoming imperative to make sure that power utilities are rapidly switching to renewables away from coal, gas, and oil.

Investors have a key role to play in supporting the power utilities sector in this transition. They can and should engage with issuers, including both governments and companies. A practice of negative screening of companies involved in thermal coal is widely used, but it is not enough to create the rapid change needed. Businesses relying on coal need to be nudged toward replacing it with other energy sources. New technologies are likely to be required, and investors can benefit from allocating capital to their development. Governments, supported by investor advocacy, need to create conducive regulatory conditions to stimulate investments in renewable energy.


Gagan Sidhu, Director, Centre for Energy Finance, Council on Energy, Environment and Water, who has previously held leadership positions in renewable energy and investment banking

Justin Kew, member of the CTI Steering Committee and a senior ESG professional with many years of experience including at Carmignac, Fidelity, and J.P. Morgan Asset Management