Apr 01, 2024 Alternatives

Real Assets and the Energy Transition

Seeking opportunity and navigating challenges in a changing energy landscape

  • The world faces environmental challenges, leading to the age of Energy Transition.
  • Real asset companies play a crucial role and are impacted by energy landscape changes.
  • Adaptive companies potentially will thrive in the changing environment, becoming enablers of the movement.

Energy enters a new era

The world is currently facing exceptional environmental challenges which will require joint efforts to deliver transformative solutions, thus heralding the age of Energy Transition. At its core, the term Energy Transition refers to moving from the use of traditional fossil fuels to cleaner sustainable alternatives. Understanding the implications that the Energy Transition will have on real assets classes, such as natural resources, real estate, and infrastructure, is paramount since these assets are the backbone of the global economy, and their values are directly affected by changes in the energy landscape. Companies that develop, own, and/or manage these assets will inevitably undergo transformational changes to their operations, financial valuation, and strategic priorities. Some will end up being disadvantaged in the process. Others, however, will embrace the changing environment, adapt in the face of fresh challenges, and grow at an unprecedented pace – these companies will become the enablers of the Energy Transition movement.

While the future is rife with unknowns, one thing is clear: for the world to successfully meet its lofty decarbonization goals, the development of real assets must adapt to meet the world’s ever-increasing global energy demands throughout every stage of the Energy Transition. Real assets must evolve and grow, enabling these changes.

In this paper, we analyze the roles various stakeholders play in enabling Energy Transition, consider the challenges real assets companies may face, and explore opportunities for sustainable growth.


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