Issue 187: Iran conflict may boost adaptation demand; Sembcorp’s diversity to the rescue

Sustainable investing

Adaptation opportunities in Iran conflict’s fallout

An underappreciated source of investment opportunities amid the Middle East conflict may lie in climate adaptation and resilience.

While disruptions in oil and gas supply chains may raise the attraction of clean energy at this moment, the benefit for renewables may be blunted by competition from non-Middle East sources of fossil fuels and from financing hurdles. Unfortunately, there may be greater certainty that the conflict will set back climate progress. With global warming likely to be more acute, companies that offer exposure to climate adaptation and resilience solutions could present medium-to-long-term opportunities.