A study by Lombard Odier and University of Oxford has found that Germany, the US and China are the countries set to benefit most from the ongoing transition to a green economy.
In the Predictors of Success in a Greening World report Lombard Odier and the Smith School of Enterprise and the Environment (SSEE), at Oxford university, identified which countries are specialising in high-growth green industries and which are laggards.
It aims to identify where the investment opportunities might lie in the global transition to more comprehensive use of sustainable energy and production systems.
The report found that Germany, Italy, Spain, the US and China are among the countries set to benefit most from the green transition, owing to their strong existing green manufacturing and technological capabilities.
Countries such as Australia and the UAE have been laggards in the past, owing to their over-reliance on fossil fuel exports. However, the reported highlighted that Australia possesses “immense renewable energy potential” and the UAE has shown a clear intent to diversify production capability resulting in recent increases in green competitiveness and potential.
For investors seeking greater exposure to clean energy industries, wind and solar companies are an increasingly important focus area, owing to the “enormous growth predicted” for renewable energy technologies and the position they occupy in globally integrated supply chains.
From an initial global sample of 1700 companies, the report identifies 93 publicly listed wind and solar companies that are “optimally positioned” to benefit from investor and policy-led engagement.
Greater collaboration between policymakers and institutional investors, to channel the substantial pool of private capital currently being targeted at the renewables sector, will play a critical role in facilitating the growth of these companies, said the report.
The report further indicates the growing role that European companies will play in the wind and solar transition.
Hubert Keller, senior managing partner at Lombard Odier said: “Lombard Odier’s ability to lead this conversation and provide frameworks and solutions for reallocating private capital into an environment-friendly economy is supported by this unique partnership with the University of Oxford.
“The study provides clear, science-based insights for investors looking to benefit from the sustainability transition.”