The need for energy independence, manufacturing capacity, and a green transition will shape investment trends over the next decade. By Sofia Karadima, Investment Monitor
The next decade is going to be characterised by a huge demand for investment, according to TS Lombard’s head of research Andrea Cicione. During a panel discussion about asset allocation in the age of inflationary volatility, organised by TS Lombard and GlobalData, he explained that there are a number of causes that will drive this demand, but the three that stand out are related to the need for more energy independence, manufacturing capacity in the West and the green transition.
Will this boost demand for investment, and in which sectors? What are the drivers behind this?
The need for energy independence and manufacturing capacity
According to Cicione, reason number one is the most immediate: the need for more energy independence. He explained that US has largely achieved energy independence, but Europe is still some way from this achievement, saying: “The fact that we cannot rely on Russian energy anymore means that a lot of investment needs to go into making sure that Europe can stand on its own two feet when it comes to energy, and assuring availability of it.”