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Generational investment opportunities rarely arise, but that’s exactly what’s happening in the push toward net zero. To limit global warming, investments in clean energy must reach US$4.5 trillion per year by 20301. It’s a transformation that could impact everything from power generation and food production to global trade and world economics.
Investing in the energy transition, however, is highly complex and requires numerous solutions. According to the International Energy Agency, those investment dollars will need to go into a vast array of companies, sectors and technologies, including developing smarter infrastructure networks, low-emission fuels, carbon capture solutions and much more.
Taking advantage of this opportunity will also require identifying new debt financing solutions, such as sustainability-linked loans and other green bonds, and equity investments into game-changing clean tech operations or established energy businesses developing innovative approaches to the transition.
Understanding how to best take advantage of this opportunity can only be done by experienced investment managers who have been embedded in this space for years. Mackenzie takes a multi-boutique approach to the energy transition. Our investment teams are autonomous thinkers, exploring the various impacts of the transition, from the risks it poses to the opportunities being created. For example, the Mackenzie Fixed Income team actively influences the issuance of green bonds to fund decarbonization projects while the Mackenzie Greenchip team has been a pioneering investor in the transition since 2007.
Each of Mackenzie’s boutiques looks at the market through their own unique lens and investment philosophy, with some searching for the unknown businesses that could one day become household names, others studying the commodities integral to electrification and others diving into the macroeconomic implications of the push to net zero. Being at the forefront of this opportunity has allowed us to make early investments in the transition and evaluate how the path to net zero impacts our investments as well as more generally, the way we live.
This transformation of the energy system will take a significant effort on the part of companies, government, and investors, but we can get there. With Mackenzie’s pioneering investors and deep expertise, we’ll help you navigate the investment opportunities and risks that may be associated with the transition to a low carbon economy.
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1 International Energy Agency, net zero roadmap, 2023
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