Renewable energy is expanding amid concerns over climate change. That represents an opportunity for investors. At the same time, traditional oil and gas output is growing, too. So that also is an option, although those concerned about limiting carbon output likely would skip it.
The U.S. and the rest of the world are moving to decarbonize, but that does not mean that fossil fuel investments are goners, according to Michael Cembalest, chairman of market and investment strategy for J.P. Morgan Asset and Wealth Management, in a recent paper. An expanding global population means that demand for energy, in particular the traditional kind, is swelling too, he noted.
“The fossil fuel share of global energy use is falling at ~0.40% per year as the renewable transition progresses,” he wrote. Nonetheless, “global CO2 emissions have not declined since…
