GS SUSTAIN: Green Capex - Accelerating the Energy Transition - Stimulating Capital and Return on Capital

To stimulate greater capital towards the Energy Transition and broader sustainable development goals, GS Research analysts believe stakeholders such as investors, managements and policymakers should deploy the three Cs: collaboration, comprehensive focus, and corporate returns clarity. Investors have rewarded companies disproportionately reinvesting in Green Capex with above-average returns, and GS Research analysts believe this will continue to be the case. At the same time, the level of investment needed to achieve Net Zero by 2050 and Infrastructure/Clean Water goals is insufficient, requiring greater focus on the 3 Cs. In this report, GS Research highlights where capital is needed, what investors are rewarding and strategies/vehicles to stimulate investment with a case study on China decarbonization strategies.