Erste Asset Management

Energy of the Future

Energy of the Future
Energy of the Future
(c) unsplash
Share post:

Kermit the Frog is right when he sings that it’s not easy to be green. Wind power? Sure, but please not in my backyard, and if possible, without a concrete base. Hydropower then perhaps? Yes, but please without damaging the river landscapes. Or maybe photovoltaics? And if you could put it on roofs so that it doesn’t seal any soil, and, as in France, over already sealed car parks (the sealing of which did not cause outrage at the time)? Yes, that’s fine, but please consider the supply chains, which are very likely to end in China and are possibly stocked by raw materials that may come from regions associated with forced labour.

Ok, then let’s stick to natural gas and indirectly finance the next war, as we have done recently? Not exactly brilliant, either. LNG, that sounds great, that could be the solution? But it produces even more greenhouse gases than ordinary natural gas and comes from countries where grown men are afraid of rainbow flags. No, France is right, let’s use nuclear energy, we’ll take care of the contaminated waste by 2100 at the latest, I promise. It’s just annoying that the construction will take at least 15 years, so the window of opportunity to fight the climate crisis is already closed. It’s like planning for the third half of a football match.

Let’s face it, there is no perfect solution. Much like with almost every decision in life, with the notable exception of the choice of partner, of course. However, instead of burying our heads in the sand and waiting for death, we are in a position to choose the best possible alternative, take the future into account in our planning, and learn from past mistakes.

“The use of renewable energy sources remains the best (not perfect!) solution to our energy problems.”

Walter Hatak, Head of Responsible Investments
Erste Asset Management

Photo: (c) Stefan Huger

If we keep this in mind and refrain from allowing our own egotism and fossil lobbying to have a say (unlike at the most recent climate conference), the use of renewable energy sources remains the best (not the perfect (!)) solution to our energy problems (alongside research into the use of new energy sources such as hydrogen). But this time, with the political support of European market leaders. Then hopefully they will be spared the fate of the European solar industry, which drowned in the Chinese subsidy flood more than ten years ago. Moreover, this time there will be added input from the West under President Biden. Perhaps this will one day bring us the perfect, independent solution without human rights violations. Christmas is upon us.

This article is part of the ESGenius Letter on the topic of the Energy of the Future. The other articles with information and insights on sustainable energy use can be found here.

For a glossary of technical terms, please visit this link: Fund Glossary | Erste Asset Management

Legal note:

Prognoses are no reliable indicator for future performance.

DOSSIER

RESPOND TO THE ARTICLE

Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website www.erste-am.com under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website www.erste-am.com. A summary of the investor rights is available in German and English on the website www.erste-am.com/investor-rights and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at www.erste-am.com.

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

Leave a comment Required fields are marked with *

Your email address will not be published. Required fields are marked *