LONDON--(BUSINESS WIRE)--A low carbon industrial revolution is being driven by innovation in the capital goods sector – according to a new report ‘Bridging low carbon technologies’ from environmental non-profit and investment research provider CDP today. Capital goods companies provide the products and solutions that major high-emitting sectors such as power generation, buildings and transport rely on.
From microgrids to machine autonomy, energy storage to hybrid renewables, a set of 22 capital goods companies are assessed on how well they are harnessing trends such as electrification, digitization and automation to help meet the Paris Agreement commitment to keep global warming below 2°C.
Some highlights from the report include:
- Electrification is identified as the biggest opportunity for the capital goods sector, with microgrids and energy storage systems ranked as the technologies with the greatest potential for green economic transformation. The overall demand for energy storage is set to grow from current levels of 10 gigawatts to 125 GW by 2030, creating an investment opportunity of US$103bn.
- Capital goods companies are identifying and investing in transformative and radical technologies such as microgrids, hybrid renewables and energy storage. Schneider, ABB, Mitsubishi Electric, Siemens and Honeywell lead the way on this.
- Renewable energy is an important profitability driver for several companies, with Vestas leading in hybrid renewables and large-scale digitalization.
Carole Ferguson, Head of Investor Research, CDP said, “We are on the verge of a low carbon industrial revolution. Regulators and markets are demanding the decarbonization of high emitting sectors and the industrial corporations at the end of the chain are looking to their suppliers to find innovative new solutions and equipment. The good news is that the capital goods sector is starting to meet this challenge.”
“From hardware to software, decentralization to digitalization, industrial suppliers are finding solutions that build low carbon into the DNA of big industry.
You can view the executive summary of the report here.