Pioneer Partner, Terrence Tehranian, explores how Covid-19 and recession are accelerating the Green Transition.
Pioneer co-founder and Partner, Terrence Tehranian, has written an in-depth article exploring how a new wave of investment in Europe’s Energy and Environment sectors is emerging, as Europe’s political and economic landscape change under the double impact of the Covid-19 pandemic and a sudden economic contraction.
The 2020 crisis confronts Europe with major issues and is triggering an unprecedented policy response from the European Union, national governments across the Continent and the UK. This crisis, unlike previous ones, is evoking a well-coordinated response, with three main elements:
- A new EU Budget of €1.8 trillion, including €750 billion of emergency economic aid
- A first-ever EU debt instrument, to restart the economy and promote the Green Transition, with new pan-EU taxes (including on waste) to service it
- Acceleration of the European Green Deal, with huge support (at least one-third of the new EU Budget) earmarked for Renewable Energy and the Circular Economy
These new policies position the Energy and Environment sectors for transformational growth, and create a unique opportunity for investors who understand Europe and can navigate its terrain.
Before the crisis, investors valued Pioneer’s infrastructure focus sectors for their yield characteristics, growth potential and solid investment returns. Now, their countercyclical uplift for the economy and their newly central role, politically and financially, means they are becoming even more compelling as an investment space across Europe.
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