Energy
From brown to green
Last update – June 2023
Sector rating
MEDIUM RISK FOR ENTERPRISES
Fragmentation
Internationalization
Capital Intensity
Profitability
Strengths & weaknesses
- 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
Sector overview
Subsectors
Contact
Ano Kuhanathan
Allianz Trade
Allianz Trade