The War in Ukraine has created a major reassessment of the world order. In the case of energy, it has raised many questions about energy policy and more particularly energy supply. Countries such as Germany and Japan which abandoned nuclear power after the Fukushima disaster, currently have to rethink their energy policies which relied too much on natural gas and Russian imports.
Many countries are looking for ways to reduce their energy dependence on other sovereign countries. And that is leading to an acceleration of a shift towards renewables. Japan for example is targeting an increase from 20% of electricity generation from renewables to close to 40% by 2030. This implies the country will have to deploy huge amounts of solar and wind power, and also look for alternative solutions such as hydrogen for energy storage and transportation.
As an impact investment management firm, Clear Skies invests in those companies that provide solutions for energy production and storage. Through the Clear Skies Climate Action Fund, we help those companies grow by providing needed capital to scale up their solutions addressing the future of energy. Companies providing solution for the energy of the future are today benefiting from an increased interest from investors. Clear Skies’ portfolios are well positioned for this changing world order.