Investors may be cautious about developed markets, but clean energy is drawing investments toward high-growth emerging markets. As the world moves toward a cleaner economy, businesses that focus on resource efficiency are proving to be smart long-term investments.
In an interview with Reuters, Torbjorn Caesar, chair and senior partner at Actis, shared insights on a shift in global economic activity. Caesar said that global capital is being reallocated from traditional strongholds such as the United States to emerging regions such as Asia and Latin America — a shift that is mainly driven by the growing need for electricity.
“There’s a massive need for new electricity,” Caesar told Reuters. This need is expected to grow along with increasing populations and booming digital economies. The priority is less about switching sources and more about building reliable infrastructure to meet increasing demand.
The International Energy Agency also details this increasing demand. Electricity is bound to become the core of the energy system, powering practically everything from transport and buildings to industry by 2045. Moreover, the world is shifting away from coal, oil, and gas to more affordable energy sources.
Global investment in energy is already increasing. In Europe, for instance, there’s a monumental shift to renewable energy, particularly wind and solar power sources.
Anticipating further growth in sustainable infrastructure, Actis is investing in renewable energy projects such as solar, wind, and hybrid systems with battery storage. It’s also focused on projects to develop infrastructure, such as transmission lines and data centers. Following Actis’ lead, now may be an opportune time to invest in clean economy stocks.
For people not ready to invest, there are other impactful ways to support the shift, including switching to a cleaner bank and taking advantage of tax breaks and credits that support green energy upgrades at home.
Despite increasing environmental issues, the steady rise of clean energy projects signals a clear path forward — and growing opportunities for development, investment, and access.
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