Geopolitics vs. the race to net zero

Original Content: AXA IM

Why the energy transition has never been more vital

The Ukraine crisis is a horrendous tragedy and the war will have a considerable impact on the European and global economy. It has brought sharply into focus the fragility of supply chains and energy security - which has manifested in runaway inflation.

Given this backdrop there is a risk that policymakers delay urgent, albeit difficult, decisions on the decarbonisation of our economies. But from both a climate and political perspective, we believe we must stay the course –in fact, we need to accelerate the energy transition to alternative cleaner fuels. This is, of course, far easier said than done.

Below, our macroeconomic and investment experts examine the current crisis and discuss how geopolitics could impact the race to net zero. We examine Europe’s plans to wean itself off cheap Russian fossil fuels, we delve into the future economic and investment implications of the war and consider what it all means for investors – from retail to institutional. We believe the energy transition today looks even more appealing – and necessary – than ever, even if the journey appears more arduous than before.

Disclaimer

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Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

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