Climate: Creating multi-trillion investment opportunities

Key themes

• Global temperatures are rising at double the rate seen in the 1980s, creating unprecedented capital reallocation.
• International Energy Agency estimates $4tn annual investment is needed by 2030, triple the current levels.
• Seven key verticals are driving opportunities: energy, transport, food and land use, industry, climate management, built environment and carbon markets.
• Global net-zero pledges now cover 92% of GDP, though US policy shifts is creating uncertainty.
• European companies are leading climate innovation across multiple sectors.

Core insights

• Energy transition requires a sevenfold increase in green power production.
• The transport sector is targeting 40% electric vehicle (EV) penetration by 2030.
• Food and agriculture innovation is addressing both emissions reduction and adaptation.
• Industrial decarbonisation is facing acceleration from carbon border adjustments.
• Buildings represent 40% of global energy consumption, driving retrofit opportunities.

Companies highlighted

Energy

• ITM Power (m cap: £220m): Green hydrogen production specialist.
• Morgan Sindall Group (m cap: £1.76bn): Grid infrastructure modernisation.
• SDCL Energy Efficiency Income Trust (m cap: £570m): Energy efficiency investment trust.
• Gresham House Energy Storage Fund (m cap: £239m): Battery storage leader.

Transport

• First Group (m cap: £974m): Public transport decarbonisation.
• Melrose Industries (m cap: £7.8bn): Aerospace innovation.
• ADS-TEC Energy (m cap: US$749m): EV charging infrastructure.

Food and land use

• Origin Enterprises (m cap: €291m): Sustainable agriculture solutions.
• ATOME (m cap: £19m): Green ammonia production.

Industry and materials

• AFC Energy (m cap: £84m): Industrial fuel cell technology.
• Glencore (m cap: £42bn): Critical minerals and recycling.

Climate management and built environment

• Verisk Analytics (m cap: US$41bn): Climate risk analytics.
• Accsys Technologies (m cap: £98m): Sustainable building materials.
• Alumasc Group (m cap: £119m): Water and energy management solutions.

Carbon markets

• Marex Group (m cap: US$2.5bn): Carbon trading and risk management.

Conclusions

• Climate transition is creating multi-trillion dollar investment opportunities.
• European policy framework supports accelerated deployment of climate solutions.
• Companies with proven technology and execution capabilities are best positioned.
• Success factors include strong balance sheets, regulatory alignment and scalable business models.
• Focus on established players in high-growth verticals with a clear path to profitability.

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