The underperformance of wind and solar equities since early 2021 has largely been driven by higher interest rates, which disproportionately affect the cost of renewables projects. But while the days of ultra-low financing costs are behind us, our forecasts for long-term bond yields to decline by end-2024 suggest to us that alternative energy stocks will outperform conventional energy stocks once again next year.
In view of the wider interest, we are also sending this Climate Economics Update to clients of our Energy service.
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