Real Assets | Investment Insight
July 19, 2023
Clean Transition Investing: From Managing Risk to Unprecedented Opportunity
Jonathan Silver | Senior Advisor, Chair of Apollo’s Global Climate Council
Scott McMurtry | Managing Director, Institutional Client & Product Solutions
KEY TAKEAWAYS
- For investors considering exposure to the clean transition, we see significant opportunities to generate attractive, diversified returns in a number of sustainability-related sectors, while driving real, positive change in the world.
- To address the global energy transition, the world requires substantial, immediate, and ongoing investment in both businesses and technologies which support decarbonization, the transition to cleaner sources of energy, and a more sustainable level of consumption.
- This will require unprecedented levels of investment. No matter how it’s calculated, the capital required to facilitate the energy transition by 2050 is enormous: Per the International Energy Agency (IEA), $150 trillion. Per McKinsey, $275 trillion. Per PWC, approximately $1,000 per year for every person on the planet.
- Because climate risk can affect every business, in every sector, globally, Apollo views investment in efforts to decarbonize as an overarching theme rather than a specific asset class. Solutions will require investments across the capital stack and with all forms of capital—including equity, debt, and various real-asset structures—from both public and private sources.
- Last year, Apollo announced the launch of a comprehensive sustainable investing platform focused on financing and investing in energy transition, decarbonization, and sustainability. We believe we can effectively deploy $50 billion in clean energy and climate-related opportunities through 2027 and see an opportunity to deploy as much as $100 billion by 2030.
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