Commentary by Galvanize Climate Solutions LLC – Investment Manager of Galvanize Global Equities, LP

December was another strong month for global equity markets and saw significant news on the Transition emerge from the UAE hosted COP28.

Fed Governor Powell did nothing to quell market expectations that the US rate cycle was over, with a dovish pivot in his December 13th speech leading to a sharp shift in rate cut expectations for 2024 and a nine-week run of consecutive gains for the S&P500, the longest winning run since 2004.

COP28 only managed to agree on language to phase out fossil fuels “in a just, orderly and equitable manner” while recognising that “transition fuels”(like natural gas) “can play a role”. However, there was progress in the commitment to renewables. Nearly 120 countries pledged to triple renewable energy and double energy efficiency by 2030 – we believe this is the real driver of the opportunity we see in these technologies.

Author: Alex Hackett

Alex is a Business Development Manager and a member of the investment funds team and is involved in portfolio construction, regulatory reporting, trade surveillance and monitoring.

Author: Thornbridge