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Sponsored Feature: Decarbonisation - the way ahead for infrastructure

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).


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