ImpactAlpha, Dec. 21 – The transition to a low-carbon economy is a “mega force,” as BlackRock declares in its 2024 outlook. How quickly the transition unfolds, and whether that’s fast enough to avert catastrophic warming, depends on factors both macro and micro.
High interest rates and inflation, which have derailed many offshore wind and other capital-intensive clean energy projects, are subsiding. Geopolitical instability, which gave cover for the expansion of fossil fuels in the name of energy security, has also accelerated the race to onshore supply chains for batteries, EVs, chips and other components critical to the low-carbon transition. In 2024, consequential elections in the US, South Africa, Mexico, India, the UK and dozens of other nations could speed, or stymie, progress to net-zero.