Low-Carbon Transition Themes in 2024

  • We monitor battery prices, elections and market attention on climate resilience for their impact on transition-related investment opportunities and risks.
  • U.S. stocks were mostly flat last week, while 10-year U.S. Treasury yields fell further. Markets still expect the first Federal Reserve rate cut around mid-2024.
  • We’re watching February U.S. CPI data out this week to see how much further inflation will fall in the near term. We still expect inflation to resurge in 2025.

The low-carbon transition is a mega force we track that is shaping investment returns now. We see potentially market-moving developments in three key areas this year. First, falling battery prices could boost demand for energy storage systems for power grids, and electric and hybrid vehicles. Second, elections around the globe could affect future energy and industrial policy. And third, rising physical damages could spur interest in a new investment theme: climate resilience.

Cheaper batteries