The road to electrification: EV development in emerging markets
To help brake the precipitous rise in greenhouse gas emissions that comes with rapid growth, electric vehicles could play an important role in emerging markets.
In this white paper, we examine where major markets such as China and India stand in their evolution and explore the scope for electric vehicles to develop in other global emerging markets.
We believe that the road to electrification has evolved in unique ways across emerging markets, shaped by government policies, existing economic structures and consumer affordability.
Projections for increased urbanisation, coupled with limited affordability and low vehicle penetration, suggest a shift towards shared mobility. This trend, in tandem with growing demand for clean power generation, could yield interesting investment opportunities in electric mobility and clean energy.
If adopting electric vehicles is accompanied by a move to more renewable energy, this would more efficiently address the urgent issues of climate change, energy independence and economic well-being for emerging market economies.
Read our white paper The road to electrification: EV development in emerging markets here
This article appeared in The Intelligence Report – 18 September 2019
Making our range of investment products ESG-proof also means tackling asset classes and industries where data availability and transparency still have some headway to make. While challenges remain, for example in emerging markets, we can now rank debt issuers comprehensively on the basis of some 90 factors. This gives us a good view of whom to embrace and whom to avoid in our EMD portfolios, as Bryan Carter explains in the first article. Having a presence on the ground matters in this respect, including in China, where our senior economist Chi Lo keeps tabs on Beijing’s efforts to transform the economy while maintaining the momentum of growth. Read his latest analysis in our second article. Finally in this edition, an extensive write-up of the many efforts and initiatives – our own and those of the many multilateral organisations we belong to – en route to a sustainable finance system, all the while remembering that there is further to go before the world becomes a better place.
Facing strong growth headwinds, Beijing will likely maintain its policy easing bias for some time yet. We believe this scenario is positive for bonds in the short term, but weak GDP growth looks set to limit equity performance until signs of solid economic stabilisation or recovery emerge in China, as Chi Lo argues in this edition of The Intelligence Report.
Investors are increasingly considering environmental, social and governance factors alongside traditional financial risks. But many balk at using ESG criteria for emerging markets, worried this limits opportunities or potential returns, as Bryan Carter explains in this edition of The Intelligence Report.
Here’s reflation, well, for now
Recent geopolitical news has caused financial markets to trade in a reflationary fashion, shrugging off weak data and concern over structural Sino-US tensions, even if the economic slowdown may evoke memories of Q4 2018. Are the similarities actually there?, we ask in this issue of The Intelligence Report .