Summary
While temporary headwinds have led to a selloff in clean tech stocks, which make up a large part of the climate solutions universe, we believe that unprecedented investments from governments, secular growth in demand for clean energy solutions, and the resulting secular decrease in these technologies’ cost structures should contribute to higher earnings momentum that is not reflected in today’s valuations.
Therefore, in our view, the recent selloff has created an attractive entry point for investors who seek to capitalize on the long-term potential in climate solutions investing.
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Published on 14 November 2023.
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