Eric Mandelblatt is the founder and CIO of Soroban Capital. We cover how the global push towards decarbonization could have massive impacts on the industrial economy, the supply and demand forces at work in commodities production, and why energy and materials represent such a small share of the market today
excerpt of the interview
The world has determined that the two big methods for decarbonizing are wind and solar generation, and electric vehicles. Now, there’s other paths that we can go down, but I’d say the big two today, the big two tools for decarbonizing the world, are really change out the power generation mix and lean heavier on wind and solar, and then let’s ramp electric vehicle penetration from the current 5%.
On the wind and solar side, what I think investors are misunderstanding, misinterpreting, is the ramp capacity in wind and solar. And the starting point. The stat we like to use around here is the world is consuming 40 times more fossil fuels than they are consuming wind and solar generation. So if I take all the fuel sources in the world and I throw them into a pie, 82% of that pie is fossil fuels today. That’s coal, that’s gas, and that’s oil. 2% of that pie is wind and solar. Now the remainder is largely hydro and nuclear. We’re not really adding capacity in a big way today.
full interview below
Investing in the Industrial Economy – Colossus® (joincolossus.com)