We are only at the beginning of the energy transition. The switch from fossil fuels to renewable energy will continue to dominate the coming decades. And investors can get a piece of the pie.
All over the world, governments are shifting up a few gears towards an energy system that is no longer based on fossil fuels. One climate plan after another is launched, each one more ambitious than the next. The objectives often extend to 2050 or even beyond, which illustrates that the energy transition will be a leading investment theme for a long time to come,” says Joris Franck, materials sector analyst at KBC Asset Management.
This transition takes place at different levels. To start with, many processes today run on fossil fuels. The idea is to electrify them. Electric cars are one of the most visible examples. There is also great potential for electrification in industry. The demand for electricity will rise enormously. At the same time, the intention is to generate as much of it as possible from renewable energy sources, such as wind and sun,’ says Franck.
Source: DE TIJD