Global energy demand is poised for substantial growth in the coming decades, which is creating attractive investment opportunities across the alternative energy landscape and the traditional energy value chain.
KEY TAKEAWAYS
- Population and economic growth are the main catalysts for increasing global energy demand. By 2040, alternative energy consumption is projected to double (from 17% in 2022 to 35%), while traditional energy will also see an increase in consumption, with volumes (ex-coal) increasing 12% in aggregate over that same time period.
- Investors face challenges, however, as existing strategies often track only traditional or alternative energy benchmarks. Traditional energy indexes, for its part, are highly concentrated and miss out on the best opportunities in alternative energy, while alternative energy indexes are widely exposed to both winners and losers and lack exposure to traditional energy.
- We believe an active investment approach that recognizes the reality of the world’s energy demands and pairs traditional with alternative sources will create superior investment outcomes.
Visit the Cohen & Steers Energy Knowledge Center to learn more.
FURTHER READING
3 Reasons to own global listed infrastructure today
Attractive valuations, an advantageous macro environment and high private investor interest set the stage for potentially strong total returns from listed infrastructure.
Why the consensus approach to energy investing is flawed
Investors have increasingly viewed energy through an either/or lens, taking a zero-sum view, and limiting their investments to traditional or alternative energy forms. This is a flawed approach.
Changing the narrative from ‘energy transition’ to ‘energy addition’
Aggregate energy demand will continue to increase in the coming decades, which is creating attractive investment opportunities across both the traditional and alternative energy landscape.
Effective March 28, 2024, the name, principal investment strategies and principal investment risks of the Cohen & Steers MLP & Energy Opportunity Fund changed. The investment objective of the Fund has not changed and remains to provide attractive total return, comprised of current income and price appreciation. The Fund seeks to achieve its investment objective through investments in securities of energy companies, including traditional-, alternative-, renewable- and clean-energy companies, natural resource companies, utilities, and companies in associated businesses.
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