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10 key energy-transition indicators highlight risks and opportunities

Investors will need to adopt innovative approaches to achieve a resilient and climate-aware strategic asset allocation

    • Expanding the infrastructure for charging electric vehicles is crucial to reduce oil demand. If all new car sales were EVs, public charging stations would need to increase from four million to 31 million.
    • Expanding the infrastructure for charging electric vehicles is crucial to reduce oil demand. If all new car sales were EVs, public charging stations would need to increase from four million to 31 million. PHOTO: BT FILE
    Published Mon, Nov 25, 2024 · 05:54 PM

    A GLOBAL effort is under way to decarbonise industries, especially the energy sector, through policy and regulatory interventions. Despite uncertainties in the pace of energy transition, the trend towards lower-carbon sources is crucial for major investors.

    More than 80 per cent of Nuveen’s 2024 EQuilibrium survey respondents consider or plan to consider energy transition in their investments; 55 per cent believe they can significantly influence it through capital allocations. Institutional investors worldwide are eager to align with this unprecedented capital movement, projected to require US$275 trillion in cumulative spending on physical assets till 2050.

    We have identified 10 key indicators to help investors evaluate their portfolios and uncover compelling opportunities.

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