Trend That Morgan Stanley Says Is “Likely To
DOMINATE FINANCIAL MARKETS
During The 2020s”

What is this trend that Morgan Stanley says is “likely to dominate financial markets during the 2020s?”¹

To understand what it is, here are the 3 letters that are going to change everything…  

ESG.

ESG stands for Environmental, Social and Governance.

And the global initiative to “go Green” is why tens of trillions of dollars are flowing in to ESG.

The world is shifting away from fossil fuels like coal, oil, and natural gas.

And it’s investing a fortune in solar power, wind power, electric vehicles, and other clean tech… that’s all ESG.

The largest governments in the world are mandating a reduction in fossil fuel consumption. And that will require tens of trillions of dollars in investment.

The European Union announced in July of this year that it will reduce emissions by 55% by 2030.³

China is the global leader in emissions (responsible for more than a quarter of global greenhouse gas emissions). And China’s President Xi Jinping said the country will become carbon neutral by 2060.⁴ Part of that is banning the sale of fossil fuel cars by 2035.⁵

And under President Biden, the US has promised reach net zero emissions by 2050.⁶ Biden will also spend trillions of dollars to improve the US’ infrastructure as part of his “Green New Deal".⁷

The world has vowed to use drastically less oil and gas over the next several decades. And it’s going to replace it with electricity.

It’s the Great Global Electrification.

It’s a permanent shift in the way the world operates. And it means tens of trillions of dollars will be spent to build out this new infrastructure globally.

Many people think Tesla or other electric vehicle companies will be the key to solving the emissions problem.

It’s true, replacing fossil fuel fleets with electric vehicles is an important part of ESG.

But this trend is so much larger than EVs alone.

The US transportation sector is only responsible for 29% of America’s carbon emissions.⁸

Industrial manufacturing, commercial and residential real estate, agriculture and powering the energy grid are responsible for the other 71%.⁹

Even Tesla founder Elon Musk admitted so much on a recent earnings call, saying the world would need "twice as much electricity if all transport goes electric and then three times as much electricity if all heating goes electric.”

The infrastructure behind the Great Global Electrification…the commodities that every electric vehicle, every battery and every solar and wind farm are going to consume – is of increasing importance.

The Great Global Electrification means replacing oil with electricity. And there’s one commodity that underpins the entire electrification infrastructure…

Copper.

And demand for copper is going to soar over the coming decades as the Great Global Electrification continues.

That’s why Goldman Sachs is calling copper “the new oil” and saying there’s “no decarbonization without copper.”¹⁰

Copper has one of the highest electrical and thermal conductivities and lowest reactivities of all metals. As a result, it’s the most widely-used metal in electricity-related infrastructure.

And as we produce more EVs, more solar farms, more wind farms and build out the electric grid, the world is going to consume much more copper.

An electric vehicle uses up to 183 pounds of copper, more than five times the amount in a regular internal combustion engine (ICE) car.

A single wind turbine can contain up to 4.7 tons of copper.¹¹ And a solar farm requires more than 5 tons to produce the same amount of energy. And that’s just the copper required to build these structures… not to transport the electricity from them.

That’s why Goldman Sachs says copper demand will soar at least 600% by 2030. And the 2020s will be the “strongest phase of volume growth in global copper demand in history.”¹²

But here’s the problem…

The world doesn’t have enough copper.

Current copper supply is already tight after decades of underinvestment by the largest mining companies.¹³

Goldman says we’ll have an annual shortage of 8 million tons by 2030¹⁴. That’s more than double the shortage that sparked a 450% rally in copper prices in the 2000s.

And global copper reserves are expected to run out between 2035 and 2045.

Unfortunately for the mining firms, it takes an average of three years to expand an existing mine. And it takes around seven years to open a new mine.

So, this will likely be a long-term problem, with the potential that copper prices may move higher as a result.

Copper prices today are around $9,000 per ton.

Goldman thinks prices will average $11,000/ton over the next 12 months. And they’ll hit $15,000/ton by the middle of the decade – a 69% increase.

A NEW COPPER COMPANY IN A TIER 1 JURISDICTION

NorthWest Copper (TSX-V: NWST | OTCQX: NWCCF) is one of North America’s premiere copper explorers and prospective developers.  Led by a world-class team that’s created billions of dollars-worth of value for shareholders over the years, NorthWest (TSX-V: NWST | OTCQX: NWCCF) is advancing several tantalizing high-grade copper projects in mining-friendly British Columbia.

Take a look at this video to learn more…

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