In France, the Greens polled just 5.5 per cent, down from 13.5 per cent in 2019, while in Germany, the Greens’ vote dropped from 20.5 per cent to 11.9 per cent. While the Greens’ vote did rise in The Netherlands and Spain, the consensus is that they were among the biggest losers from the elections.
looked politically risky, and would certainly increase sovereign risk for a business community that desperately wants settled policy around decarbonisation. But perhaps Dutton senses the trends from Europe will be repeated here.The pushback against greenflation is unlikely to be good news for developers of renewable Europe, who were already struggling to make a buck.
Antia, who is based in New York, says this is complex territory to navigate, in large part because it is a sector where “two seemingly contradictory things can both be true at the same time”. Manufacturers of components for modernising and expanding electricity grids should see strong demand. In an example of how granular investors need to get, PGIM sees a particular opportunity in South American transmission companies which have the ability to pass through costs to end users. “We need more transmission lines, the grids that we have need to be hardened,” Antia says. “This is literally a universal opportunity.
PGIM sees natural gas as a vital transition fuel as it increasingly displaces coal, and sees promise in smaller US gas producers, large LNG players, and the debt of pipeline companies.