The energy transition: Why renewables outperform fossil fuels

A joint report by the International Energy Agency and the Centre for Climate Finance & Investment at Imperial College examines the risk and return proposition in energy transitions. It looks at publicly traded renewable power and fossil fuel companies in advanced and developing economies calculating the total return and annualized volatility of these portfolios over 5 and 10-year periods. 

Across all portfolios, renewable power generated higher total returns relative to fossil fuel. Annualized volatility for the renewable power was lower than fossil fuel in the global and advanced economies portfolios, but higher in the China and emerging market and developing economies portfolios.

Click here to view Michael’s slides[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Michael%20Waldron%22%2C%22job_role%22%3A%22%20Head%20of%20investment%20team%2C%20International%20Energy%20Agency%20(France)%22%2C%22content%22%3A%22Michael%20Waldron%20is%20an%20energy%20investment%20analyst%20in%20the%20economics%20and%20investment%20office%20of%20the%20International%20Energy%20Agency.%20He%20was%20previously%20the%20project%20leader%20and%20lead%20author%20of%20the%20IEA%E2%80%99s%20Medium-Term%20Renewable%20Energy%20Market%20Report%2C%20which%20assesses%20market%20trends%20of%20renewables%20in%20the%20electricity%2C%20transport%20and%20heat%20sectors.%20At%20the%20IEA%20he%20has%20also%20worked%20as%20an%20oil%20demand%20and%20biofuels%20analyst.%20Prior%20to%20joining%20the%20IEA%2C%20Waldron%20worked%20as%20a%20senior%20energy%20markets%20analyst%20at%20Lehman%20Brothers%20in%20New%20York%20and%20London.%20Waldron%20obtained%20his%20Masters%20in%20International%20Energy%20Policy%20%26%20International%20Economics%20at%20Johns%20Hopkins%20University%2C%20School%20of%20Advanced%20International%20Studies%20(SAIS)%20and%20his%20Bachelors%20degree%20in%20Economics%20%26%20Government%20at%20Cornell%20University.%22%2C%22image%22%3A%2245852%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fmichael-waldron-0410542%2F%22%7D%5D” title=”Speaker” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Colin%20Tate%20AM%20%22%2C%22job_role%22%3A%22Chief%20executive%2C%20Conexus%20Financial%20(Australia)%22%2C%22content%22%3A%22Tate%20has%20been%20an%20investment%20industry%20media%20publisher%20and%20conference%20producer%20since%201996.%20In%20his%20media%20career%2C%20Tate%20has%20launched%20and%20overseen%20dozens%20of%20print%20and%20electronic%20publications.%20He%20is%20the%20chief%20executive%20and%20major%20shareholder%20of%20Conexus%20Financial%2C%20which%20was%20established%20in%202005%2C%20and%20is%20headquartered%20in%20Sydney%2C%20Australia.%20%5Cn%5CnThe%20company%20hosts%20more%20than%2020%20conferences%20and%20events%20globally%20each%20year%20and%20publishes%20three%20digital%20publications%2C%20including%20the%20global%20website%20and%20strategy%20newsletter%20for%20global%20institutional%20investors%E2%80%AFTop1000Funds.com%2C%20Professional%20Planner%20for%20financial%20planners%2C%20accountants%20and%20private%20bankers%20in%20Australia%20and%20Investment%20Magazine%20for%20Australian%20superfunds%20and%20institutional%20investors.%20One%20of%20the%20company%E2%80%99s%20signature%20events%20is%20the%20bi-annual%20Fiduciary%20Investors%20Symposium%20attended%20by%20global%20asset%20owners%20and%20hosted%20in%20the%20Americas%20and%20Europe.%20%5Cn%5CnConexus%20Financial%E2%80%99s%20events%20aim%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%20retirement%20incomes.%20%5Cn%5CnTate%20served%20for%20seven%20years%20on%20the%20board%20of%20Australia%E2%80%99s%20most%20high%20profile%20homeless%20charity%2C%20The%20Wayside%20Chapel%3B%20and%20he%20has%20underwritten%20the%20welfare%20of%2060%2C000%20people%20in%2028%20villages%20throughout%20Uganda%20via%20The%20Hunger%20Project.%20In%202021%20was%20appointed%20as%20a%20Member%20(AM)%20of%20the%20Order%20of%20Australia%20(General%20Division)%20for%20significant%20service%20to%20the%20community%20through%20charitable%20initiatives.%20%22%2C%22image%22%3A%2245799%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fcolin-tate-839a5a181%2F%3ForiginalSubdomain%3Dau%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]

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