Generation IM: Trends Report 2024

Sources

01 01 Year in Focus

Fig. 1

Still rising The Global Carbon Budget, Friedlingstein et al. 2023

Fig. 2

On the drawing board Global Energy Monitor

Fig. 3

A daunting program International Energy Agency: Net Zero by 2050 Scenario International Energy Agency

Fig. 4

What we need now International Energy Agency: COP28 Tripling Renewable Capacity Pledge

Fig. 5

Phasing out fossil-fuel use Net Zero Tracker

02 02 Power

Fig. 6

Not falling yet Ember: Electricity Data Explorer

Fig. 7

The coal behemoth Global Energy Monitor: Global Coal Plant Tracker

Fig. 8

Hail the sun Energy Institute: Statistical Review of World Energy, 2024 Data from the 2024 Statistical Review of World Energy with additional data analysis by Generation

Fig. 9

Making the shift Ember: Electricity Data Explorer

Fig. 10

A changing mix Ember: Electricity Data Explorer

Fig. 11

Get in the queue Lawrence Berkeley National Laboratory: Queued Up, 2024 Edition

Fig. 12

Reforms pay off Ember: Electricity Data Explorer

Fig. 13

Hail the wind German Special Agency for Onshore Wind Energy

Fig. 14

Still off the grid International Energy Agency, 15 September 2023: Commentary, “Access to electricity improves slightly in 2023, but still far from the pace needed to meet SDG7.”

Fig. 15

Choking Health Effects Institute and Institute for Health Metrics and Evaluation, 2024: “State of Global Air 2024.”

03 03 Transportation

Fig. 16

Out of the exhaust pipe BloombergNEF: New Energy Outlook 2024

Fig. 17

Up and away International Energy Agency: Global EV Outlook 2024

Fig. 18

Getting closer International Energy Agency: Global EV Outlook 2024

Fig. 19

Lithium gets cheaper Bloomberg

Fig. 20

Batteries get cheaper too BloombergNEF

Fig. 21

Plugging in International Energy Agency: Global EV Outlook 2024

Fig. 22

Stuck in traffic INRIX 2023 Global Traffic Scorecard

Fig. 23

Can you take the train? Center for International Earth Science Information Network, Columbia University, 2023: SDG Indicator 11.2.1: Urban Access to Public Transport, 2023 Release. Palisades, New York.

Fig. 24

All aboard Organisation for Economic Co-operation and Development

Fig. 25

Searching for an alternative Generation analysis of airline disclosures Generation has converted disclosures into metric tonnes where other units were used in airline disclosures

Fig. 26

A thirst for crude Energy Institute: Statistical Review of World Energy 2024

04 04 Buildings

Fig. 27

Holding steady International Energy Agency; Generation analysis

Fig. 28

Action needed International Energy Agency, 2023: “Annual investment in energy efficiency in the buildings sector in the Net Zero Scenario, 2017 – 2030.”

Fig. 29

Follow the rules World Bank Global Indicators Group: Building Green global dataset

Fig. 30

Moving to the city World Bank

Fig. 31

Out with the old Germany Federal Statistical Office

Fig. 32

Making the switch International Energy Agency, March 2024: Clean Energy Market Monitor

Fig. 33

Cleaner and greener International Energy Agency, March 2024: Clean Energy Market Monitor

Fig. 34

Embedded emissions Inventory of Carbon and Energy Database Version 3.0

05 05 Industry

Fig. 35

From the smokestack BloombergNEF: New Energy Outlook 2024

Fig. 36

Split those molecules International Energy Agency: Hydrogen Production and Infrastructure Projects Database

Fig. 37

Cement emissions The Global Carbon Budget, Friedlingstein et al. 2023

06 06 People, Land & Food

Fig. 38

Living in poverty World Bank: Poverty and Inequality Platform

Fig. 39

Food prices are high Food and Agriculture Organisation: World Food Price Index

Fig. 40

Where is hunger concentrated? United Nations: Sustainable Development Goals Indicators Database

Fig. 41

Plowing the Earth History Database of the Global Environment v 3.3, Klein Goldewijk, C.G.M, Utrecht University, 2023

Fig. 42

The yield gap Gerber, James S., Project Drawdown

Fig. 43

Lagging investor interest Good Food Institute 2010 — 2022 data sourced from ‘State of the industry report 2022 — plant based meat, seafood eggs and dairy’ and 2023 data source from GFI investing in alternative proteins website.

Fig. 44

What’s destroying the world’s forests? Global Forest Watch

Fig. 45

When and where trees are dying https://www.globalforestwatch.org/

07 07 Financing the Transition

Fig. 46

Banking on fossils Sierra Club, Fair Finance International, BankTrack and Rainforest Action Network: Banking on Climate Chaos / Fossil Fuel Finance Report 2024

Fig. 47

Searching for solutions PwC State of Climate Tech 2023

Fig. 48

Priorities International Energy Agency: World Energy Investment 2024

Fig. 49

Clean vs. dirty International Energy Agency: World Energy Investment 2024

Fig. 50

Still high International Monetary Fund: Fossil Fuel Subsidies Data, 2023 Update

08 08 Looking Ahead

Fig. 51

Global overheating Generation analysis of JRA-55 data

Fig. 52

New industries, new jobs US Department of Energy

Fig. 53

Trading carbon Global Carbon Budget: Updated from Peters, GP, Minx, JC, Weber, CL and Edenhofer, O 2011: “Growth in emission transfers via international trade from 1990 to 2008.” Proceedings of the National Academy of Sciences 108, pp. 8903 – 8908.

Dedication

The Generation group dedicate this report to the memory of our dear colleague Anne Channevy. She contributed extensively to the work of this year's report and died, unexpectedly, a week after it was published. Anne was 48.

Acknowledgements

Generation Investment Management LLP would like to thank John Lang and Camilla Hyslop, of the organization Net Zero Tracker, for help in analysing the excellent data set that group has compiled. We thank Jonathan Foley and James Gerber of Project Drawdown for data and assistance in analysing the world’s agricultural yield gaps. Finally, we thank Chiara Delmastro of the International Energy Agency for help with data access, and we express our gratitude for the hard work of hundreds of employees in that organisation, the world’s foremost storehouse of knowledge about the energy markets.

Important information

This report has been prepared by Generation Investment Management LLP ('Generation') for discussion purposes only and reflects the views of Generation as at September 2024. It is not to be reproduced or copied or made available to others without the consent of Generation.

The information presented herein is based on Generation’s analysis of publicly available data, is intended to present a global perspective on different areas that Generation believes represent a sustainable economy and should not be construed as investment research, advice or the making of any recommendation. References to any companies must not be construed as a recommendation to buy securities of such companies.

The jurisdictions and time periods presented herein may vary, as the data shown is what Generation used in its own assessment and believes to be the most complete view to support each identified area of sustainability and the associated trends. 2024 and other historic estimates made throughout the report were extrapolated from cited research and based on previous trends and known current data.

While the data is from sources Generation believes to be reliable, Generation makes no representation as to the completeness or accuracy of the data. Generation shall not be responsible for amending, correcting, or updating any information or opinions contained herein, and we accept no liability for loss arising from the use of the information presented herein.