It’s too big for me to do myself, so subreddits such as this are absolutely amazing resources IMO for anyone looking at this space or otherwise.
First off. If you haven’t yet, I’d recommend listening to this pod by Smarter markets. Maybe three? Four times?? Lol, you’ll see what I mean if you give it a listen.
Basically here’s where I’m at after diligently listening to this pod.
I’d like to find out which sectors listed within various NDCs are most likely to be regulated further to cut GHG emissions.
Sectors will need to be strong enough to withstand the cuts mandated on them by government, yet capable of reducing emissions. This could mean that they currently represent a large scope 1-3 footprint and should be able to reduce their emissions (O&G?), or the sector is in a transitionary stage leading to a new low emission norm (renewables, autos, HVAC?).
Once this is determined, move to step2👇
Look for companies who can enable these sectors to reduce GHG emissions as will be required.
Or, find companies who offer alternative methods of producing/refining/generating products (power, NG, oil)
Some examples may be PYR for the steel sector, or ANRG as a NG alternative.
Once a few solid companies who stand to benefit from carbon financing and NDC regulated GHG reduction targets are found, the next step would be to analyze each individual company to find the strongest balance sheet and forward guidance..
Anyone have thoughts on this process?
There is still lots of time for this sector to develop, however it would appear that the strategy outlined by Peter at 44:03 of this pod has already begun in Canada..
See Canadian O&G👇
https://www.bloomberg.com/news/articles/2022-03-29/trudeau-climate-plan-calls-for-42-cut-in-oil-and-gas-emissions