Investing in the energy transition
As momentum builds to tackle climate change, governments worldwide — including the US, UK, EU, China and Japan — are planning huge programmes to tackle both the climate emergency and air pollution, through the transition from fossil fuels to zero-carbon alternatives. Clean energy investors can play an important part
JOE BIDEN’S CLIMATE PLAN USHERS IN A NEW ERA FOR CLEAN ENERGY
President Biden’s environmental plan is set to reinvigorate the global fight against climate change and turbo-charge the clean energy industry. The Democrats’ environmental agenda couldn’t be bolder. The new president’s pledge to re-join The Paris Agreement within a day of taking office and a promised $2trn (£1.46trn) of new green investment are the pillars of a grand strategy that aims to make the US carbon neutral by 2050. Beyond climate change, the new administration will also be tackling other pressing environmental issues, such as air, water and plastic pollution.
Powered by the know-how and financial heft of the US, the clean energy sector looks poised to enter a dynamic era. Billions of dollars of new private and public investment can be expected to flow into green infrastructure and environmental technology. In other words, clean energy could become the key pillar of the 21st- century economy.
A GREEN TIPPING POINT
With Biden’s policies promising to create fresh momentum for global climate action, the world is at a tipping point. Not least because his electoral victory comes at a time when the economic forces driving a green transition are gaining strength. Many renewable energy technologies are now achieving economies of scale unthinkable just a few years ago and have consequently become cost competitive with fossil fuels.
The alignment of the new US policy on climate change with those of other economies will provide a crucial shot in the arm for the global clean energy industry. It will serve as a catalyst for private and public investments in the sector worth billions, and undoubtedly set in motion a new clean energy race.
WHY INVEST IN THE ENERGY TRANSITION?
It’s becoming clear that the world is recognising the urgency to move towards a low-carbon economy and acting accordingly. At the same time, the world’s increasing energy usage — caused by rapidly growing populations and economic expansion in emerging markets
— means demand for energy will continue to rise.
The only way to meet the world’s growing demand for energy while decreasing its carbon emissions is to adopt more energy-efficient technologies and switch to low- or zero- carbon energy alternatives.
The Pictet- Clean Energy investment team believes that this energy transition, combined with all the fast-moving advances in enabling technologies, will create investment opportunities for decades to come. The fund provides a very relevant solution for investors looking to be part of this global momentum and play a part in the transition.
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For more than 25 years, the thematic equity experts at Pictet Asset Management have accurately identified the most rewarding themes, by carefully separating enduring megatrends from fads. Learn more at
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The Pictet-Clean Energy fund captures opportunities across the whole of the energy transition and aims to deliver long-term growth by investing in companies supporting and/ or benefiting from the move to a low-carbon economy