Nick Langley

The global energy transition is an unstoppable process with major questions marks still hanging over it, not least among them the economic implications of super-cheap energy once the transition is complete, according to ClearBridge Investments’ Nick Langley.

Understanding the effect of economic changes on the stocks in a portfolio helps investors make smart allocation decisions. For infrastructure investors, adjusting the balance between defensive utilities and user-pays infrastructure stocks as conditions change can ensure superior returns relative to general equities, said ClearBridge Investments’ Nick Langley.

A new International Energy Agency report projects global renewable energy growth in the next five years will match that of the last 20, with renewables also set to overtake coal as the largest electricity source by 2025. Australian investors won’t have to look far to find stocks poised to benefit from this momentum shift.

Speaking on a fireside chat during The Inside Network’s recent ESG event in Tasmania, Nick Langley said that while infrastructure assets will continue carrying the burden of inflation there is likely more to be concerned about with REITS, both in the dominant US market and around the world.