Professor of Business, NYU Abu Dhabi
Chairperson and CEO, Euroclear
Executive Chairman, GFG Alliance
- Accelerating the pace of transition and decarbonization is crucial for meeting net-zero targets by 2050, but it requires the integration of efforts from all stakeholders in the industry.
- Moving towards clean energy, particularly for high-polluting industries like steel and aluminum, can be a challenging task that requires significant investment, but the natural gas and clean energy resources in the Middle East can help facilitate this transition.
- The shift towards sustainability will have substantial economic and social consequences, including accelerated depreciation of previous investments, higher prices for consumers, and the creation of new jobs, potentially resulting in job losses.
- The rise of sustainable investment opportunities requires infrastructure that supports funding, and international investment flows, particularly to facilitate green issuance.
- The COP28 event presents a significant opportunity to discuss and prioritize the acceleration of the transition to sustainability and decarbonization, particularly by establishing hubs for green hydrogen and ions.
Investopia 2023 hosted a session entitled "Growth Opportunities in Times of Decarbonization," where industry leaders discussed the challenges of transitioning to net-zero and decarbonizing production in their respective industries. The discussion was moderated by John Defterios, a Professor of Business at NYU Abu Dhabi, and featured Lieve Mostrey, Chairperson and CEO of Euroclear, and Sanjeev Gupta, Executive Chairman of GFG Alliance.
Defterios opened the discussion by framing the topic as the challenge of our generation, noting the need to accelerate the pace of transition and decarbonization. The speakers addressed the challenges of decarbonizing production in the steel and aluminum industries, among the global polluting industries. They emphasized the need for primary product production to happen where the source is and not where the demand is, highlighting the potential for the Middle East to become a hub for green ions.
Mostrey discussed Euroclear's role in facilitating funding cycles between Western and developing markets, including green issuance and providing ESG data to investment funds. She highlighted the economic and social consequences of the transition to net zero, including the potential for accelerated depreciation and job losses in specific sectors.
Gupta emphasized moving away from coal-based blast furnaces and transitioning to natural gas and hydrogen. He noted the potential for hydrogen to transform the steel industry but acknowledged that it is currently expensive. He also highlighted the importance of motivating younger generations to join the industry and emphasized the need for skills training to achieve the green transition.
The speakers also discussed the disconnect between the energy industry and consumers and the importance of engaging consumers in the transition to net zero. They suggested that the rise of electric cars and the demand for decarbonized products from consumers will drive the industry's transition.
The session concluded by discussing the upcoming COP28 event and its potential to accelerate the transition to net zero. The speakers suggested that COP28 could be an opportunity to discuss investment opportunities and legal ownership of investment in the green transition.
Overall, the session highlighted the challenges and opportunities the transition to net-zero presents and the need for collaboration between industries, governments, and consumers to achieve decarbonization.