Investing in the Decarbonisation Economy
- Even by conservative estimates, capital investments to reduce greenhouse gas emissions are expected to be massive.
- The average cost of solar and onshore wind energy is lower than power from conventional sources, which is increasing demand for renewable energy and clean technology.
- To capitalise on the investment opportunity, we believe it is just as important to focus on companies aiding avoidance of global emissions as it is to focus on companies that reduce their own global emissions.
- Importantly, fossil fuels like oil, gas, and coal are not expected to be fully replaced as the transition to renewable energy unfolds—estimates suggest that these traditional sources of energy will simply grow at a slower rate.
- Innovative oil and gas companies can play a role in the decarbonisation solutions and, in our view, those in the vanguard should be considered an important component of the overall investment opportunity set.
Read on to view the full paper by Jennison Associates.
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