Conventional energy investment still critical for years to come

Despite the tailwinds renewables are enjoying today, we believe 2050 net-zero goals are largely unrealistic, given grid reliability and structural supply chain challenges. This delayed energy transition will result in a long, useful life for conventional generation. ESG scores decline globally for second year in a row  Specifically, we believe natural gas will remain critically important for home heating and power generation. In essence, the market is understating the cash flow durability of traditional generation. Investors must therefore strike a delicate balance between inves...