Why green energy credit now?
The energy transition will drive the biggest economic reconfiguration the industrialized world has experienced, and achieving net zero will take decades, creating long-term opportunities for investors. Claudio Vescovo of Nuveen Infrastructure examines the large opportunity for green energy credit investment in 2023.
Key topics covered
- Investors have provided €550 billion of European green infrastructure financing between 2010 and 2020, and the capital requirement continues to expand.
- Approximately €5 trillion of financing is needed in the next seven years for green infrastructure in Europe alone.
- The clean energy sector has shown an incredible resilience throughout the worst economic periods including recession and COVID-related lockdowns.
- Investors can gain exposure to the long-term decarbonization trend with an innovative approach to green energy credit that offers the potential for debt-like risk, attractive returns in a rising rate environment and an intrinsic hedge to inflation.