Share page with AddThis

Sponsored Feature: Decarbonisation - the way ahead for infrastructure

infrastructureImplications
For infrastructure investors, there is a massive amount of investment opportunity ahead to navigate the transition towards net zero, drive the energy transition and push for innovative technical and financial solutions. Given that the infrastructure that supports the economy today is the result of decades of deployed capital, the investment decisions investors make today will be critical to building a greener, cleaner future. The path to net zero is not easy and requires a diverse set of initiatives and sustained infrastructure investments.

In our view, the transition presents opportunities for investment in different points of the journey:

1. Invest in low-carbon infrastructure that directly avoids greenhouse gas emissions to sustain the rapid expansion of renewable power capacity to meet ambitious national targets.

2. Repurpose existing infrastructure to cut emissions, partnering with hydrocarbon companies to help them transition from shades of brown to shades of green.

3. Invest in new climate technology, particularly for harder-to-abate sectors, that could accelerate the low carbon transition and disrupt current business models.

Investors want and need help navigating an ever more complex world in the search for income, inflation mitigation and diversification, often with an overarching goal to support the goal of net zero greenhouse gas emissions by 2050. In our view, adding infrastructure to a portfolio can help investors achieve all these goals and potentially build stronger, more resilient portfolios.

Explore alternative investment strategies at BlackRock.

1 Source: BlackRock, September 2022. IEA, February 2022, Carbonomics, Goldman Sachs, June 2021. All figures are in US dollars.
2 Source: BlackRock, September 2022. General Electric Company, “Accelerated Growth of Renewables and Gas Power Can Rapidly Change the Trajectory on Climate Change” (2020).

Disclaimers

Risk Warnings
Capital at risk.
The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

Important Information
This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) only and should not be relied upon by any other persons.

In the UK and Non-European Economic Area (EEA) countries: this is issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 02020394. For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock.

Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer.

© 2022 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, and iSHARES are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.

ID: MKTGH1122E/S-2574140-5/5