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GREEN ENERGY: MAKING INFRASTRUCTURE HAPPEN

Green Energy will be the dominant driver of global infrastructure over the next decade, with $6 trillion of investment needed annually to decarbonize the world, address water needs and shore up transportation and other critical systems.

We believe Green energy will be the dominant driver of global infrastructure over the next decade, with $6 trillion of investment needed annually to decarbonize the world, address water needs and shore up transportation and other critical systems. Where will the funding come from for such a substantial increase from the $3.2 trillion per year invested from 2016-20?

We believe that will be a critical question well beyond ESG investors as companies, policymakers and investors demand greater clarity from each other on needs and returns. We estimate that more than a third of incremental Green Capex can come from existing publicly traded companies based on their balance sheet and reinvestment spare capacity. Who stands to benefit? We expect equity markets will further reward companies investing in, or exposed to customers’ investments in, Green Capex that delivers favorable corporate returns. We expect rising focus and investor support for the Greenablers (Green Enablers) — sectors where Green Capex is needed more urgently to help alleviate future supply-chain bottlenecks and/or reduce execution risks.

RewinAnder Research: GREEN ENERGY: MAKING INFRASTRUCTURE HAPPEN