Does clean energy deserve a place in investors’ portfolios?

AFTER being one of the stars of the pandemic, clean energy has had a reality check in the past 18 months. Since its peak in Jan 2021, the sector is plagued by a variety of issues – most prominent of which are supply-chain related. In this challenging environment with the raft of issues yet to be resolved, attention has shifted towards traditional energy - much to the chagrin of environmentalists.

Does clean energy still deserve a place in investor portfolios?

Undeniable growth potential

Despite teething problems, the growth potential of the clean energy sector remains undeniable. The grave threat of climate change looms threateningly on the horizon, with environmental targets teetering further and further out of reach with every passing day. The significance of this issue was recognised during the COP26 meeting in 2021 - albeit with commitments still somewhat lacking. While further work must be done, recognition is a good first step, and more importantly, provides a strong foundation to build on for the rest of the decade.