Extreme weather events such as this summer’s wildfires in California, Greece and Turkey as well as floods in China, Germany and Belgium highlight the devastating impact of climate change. As global decarbonisation efforts gain momentum, we believe there’s an attractive, multi-decade investment opportunity in clean energy infrastructure, which is at an inflection point for two reasons.
For context, a $50 trillion investment in clean energy (renewables, electrification, energy efficiency/reliability) is needed to keep emissions flat relative to today given expected population and energy demand growth around the world. Globally, $100 trillion of investment is needed to meet the Paris Agreement goals and mitigate the negative impacts of rising world temperatures.
We see attractive risk-adjusted investment opportunities in clean energy infrastructure, where asset owners can generate potential steady, long-term cash flows backed by contracts from sovereigns or corporates, and/or earn regulated rates of return. More broadly, we believe the clean energy infrastructure sector offers the potential for secular growth and income generation, providing a compelling long-term investment opportunity.
Please be sure to listen to the replay of our recent webcast Clean Energy Infrastructure: Growth Opportunities & Risks of the Energy Transition (password: AMD2021), or contact your Goldman Sachs representative, for more information.
Please contact your Goldman Sachs representative for more information.