From brown to green

Last update – June 2023
Business environment risk
Political risk
Commercial risk
  • Increased investment in clean energy
  • Improved economics at a time of high and volatile fossil fuel prices
  • Enhanced policy support through various instruments
  • Strong alignment of climate and energy-security goals
  • Focus on industrial strategy as countries seek to strengthen their sovereignty
  • Geographic imbalances in investment
  • Weak electric grid infrastructure in many economies, including the US
  • Uncertainties over longer-term demand for fossil fuels
  • High upfront spending required for clean-energy investments
  • High financing requirements
  • Vulnerability to geopolitical risk
Ano Kuhanathan
Allianz Trade