Premier Wealth Management based in the UK

Investing in Energy Transition

Many of us are interested in the environment and the effects of new energy sources on global climate change and, with an eye towards ESG practices, its likely climate change is on your radar.

The three areas most likely to make a significant difference towards climate change mitigation are:

1.       Energy revolution – the growth of renewable forms of energy and their adoption as principal components to a new energy system.  This includes wind, solar, and hydro and trillions of investment is deemed to be needed for even localised adoption.

2.       Decarbonisation of industry – the replacement of fuel sources of which renewable natural gas and methane capture are key vectors.

3.       Incremental electrification – increasing efficiency in how it is supplied and also how it is used. 5G, infrastructure and transport are expected to dramatically drive demand for electricity.

While attractive investment opportunities are emerging in the area of climate change, Russell Investments is actively working in this area to create a balanced approach.  Investing to make a difference, especially through the commitment of capital into private markets, highlights the risks of future-proofing and overstatement of targets and returns.   They have adopted a multi-manager approach providing robust governance and an efficient way to overcome the diseconomies of scale.

It’s on our radar so stay tuned.

And remember the value of units can fall as well as rise, and you may not get back all of your original investment.

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