The trillion-dollar investment opportunity
Looks can be deceiving. Beneath the surface of the energy transition lies something more urgent, less politically vulnerable, and worth trillions: energy security. [1]
The strategic shift: from transition to security
While climate headlines dominate, the real driver of capital and policy in the coming decade may be something more immediate: keeping the lights on.
The energy transition is widely recognised as the defining challenge of our time, as it is the one that most directly affects our future. If we do not get this right, everything else we are working towards, from cloud computing to resource extraction, will have nowhere to play out. Solving this for the energy transition, protects all of us against the worst consequences of climate change.
In addressing this challenge, priorities are revealed and the part of the transition that is already attracting capital - policy support and investor attention - is energy security.
This paper is not here to revisit the urgency of climate action and decarbonisation. Instead, it focuses on the clear and present opportunities from energy security. In our view, the more profitably a company can participate in this theme, the more sustainable the business model will be, and the more resilient the energy transition itself becomes.
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Article by Jags Walia Head of Global Listed Infrastructure strategy – Van Lanschot Kempen
Source: 1. IEA
Disclaimer
Van Lanschot Kempen Investment Management NV (VLK Investment Management) is licensed as a manager of various UCITS and AIFs and authorised to provide investment services and as such is subject to supervision by the Netherlands Authority for the Financial Markets. This article is for information purposes only and provides insufficient information for an investment decision. This article does not contain investment advice, no investment recommendation, no research, or an invitation to buy or sell any financial instruments, and should not be interpreted as such. The opinions expressed in this article are our opinions and views as of such date only. These may be subject to change at any given time, without prior notice.
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