• In 2024, for the first time, renewable energy made up over half of the UK’s energy production¹
• Carbon emissions globally hit a new record high in 2024 ²
• In 2024, $2 trillion was invested in clean energy – $800 billion more than fossil fuels³

2024 was another record-breaking year for UK renewable energy production. Renewables generated 50.8% of the UK's electricity. Wind generation reached a record 29.5%, solar 5.2% and nuclear 14.3% of the UK's electricity, while fossil fuels fell to levels last seen in the 1950s at 31.5%⁴. As the chart below shows, clean energy now outstrips non-renewable electricity generation in the UK and the progress over the last 20 years has been excellent.

The UK is committed to reaching net zero by 2050. This means that the total greenhouse gas emissions would be equal to the emissions removed from the atmosphere. The largest contributing activity to global carbon dioxide (CO2) emissions is electricity & heat generation, followed by transport, manufacturing, construction and agriculture⁵. Therefore, decarbonising the grid is essential.

Unfortunately, the rest of the world is not quite as advanced as the UK in transitioning its power grid. According to the World Meteorological Organization (WMO) carbon emissions hit a new record high in 2026⁶. This headline, however, masks significant progress towards reducing global CO2 emissions. A surge in renewables pushed clean electricity's share to 40.9% of global electricity generation in 2024. Unfortunately, fossil fuel generation also increased slightly (+1.4%) meaning overall power sector emissions increased to a new high⁷. As we have discussed before, China's vast scale can have important global implications, and electricity generation in China is surging. Whilst the share of production that comes from renewables is growing, coal consumption is still increasing. The mix is moving proportionally towards renewable energy and should continue towards a much more renewable mix⁸.

In the US, where electricity demand and supply are relatively stable year-to-year, large increases in renewable electricity production meant coal generation fell in 2024⁹. Overall, according to the UN, in 2024 $2 trillion was invested in clean energy - $800 billion more than fossil fuels¹⁰. There is a significant amount of money flowing into these industries, and therefore investment opportunities should present themselves. Renewables projects are very sensitive to input prices of raw materials and borrowing costs. Furthermore, the attractiveness of renewables investing has tended to have a negative correlation with prevailing fossil fuel prices. Bowmore portfolios There are several areas in which we can invest in the push towards sustainability. These include renewable energy, energy storage, nuclear, hydrogen, carbon capture, electrified transport and buildings, clean industry, clean shipping and power grids. Within our ESG portfolio range we hold the Impax Environmental Asian Markets fund which focuses on investing in companies within the Asia-Pacific region that contribute to broad environmental sustainability. The fund targets businesses involved in renewable energy, resource efficiency, waste management, and water treatment. The fund has delivered strong performance of +13% over the last 12 months¹¹. The largest holding is the semiconductor manufacturer TSMC which we have discussed before. Other notable holdings are Cleanaway Waste Management; an Australia-based firm helping companies manage their waste collection, treatment, recycling or safe disposal of waste. The fund also has a large holding of MTR Corp which operates the Mass Transit Railway, the most popular public transport network in Hong Kong. We will continue to look for attractive ways to invest in the energy transition and support regions and sectors in decarbonising.

Source: LSEG DataStream, data as at 29/08/2025 The value of your investments can go down as well as up, so you could get back less than you invested. Past performance is not a guide to future performance.

Sources:

1. Official stats show renewables generated over half UK’s electricity for the first time in 2024
2. Record carbon emissions highlight urgency of Global Greenhouse Gas Watch
3. Renewable energy – powering a safer future | United Nations
4. Official stats show renewables generated over half UK’s electricity for the first time in 2024
5. Breakdown of carbon dioxide, methane and nitrous oxide emissions by sector - Our World in Data
6. Record carbon emissions highlight urgency of Global Greenhouse Gas Watch
7. Global Electricity Review 2025 | Ember
8. China | Energy Trends | Ember
9. US Electricity 2025 - Special Report | Ember

10.Renewable energy – powering a safer future | United Nations 11. Alpha Terminal