Research in Action: Investing in the renewable revolution

Connections - investment views from Janus Henderson (UK)

In a new series from Janus Henderson, Research in Action, Director of Research Matt Peron explains the magnitude of the energy transition now taking place in the economy and what investors should consider as the switch to renewables unfolds.

Key Takeaways:

• In the US, the shift to renewable energy could require as much as $1 trillion in spending per year, with implications for almost every area of the economy.
• While that level of spending may not be feasible, significant investment is occurring in select technologies that will be key to moving the transition forward, such as battery technology.
• Diversification can help manage downside risk as technologies emerge. A pragmatic approach to investment timelines is also important. Real-world constraints, for example, could create near-term volatility for long-term investment opportunities.