In brief: Brown-to-green investment a key theme for 2024, says KKR

Investment is needed to decarbonise heavy industry, property and transportation, according to the firm.

Decarbonisation will be one of 2024’s most prominent investment themes, says KKR. In a report detailing its seven key themes for the year ahead, the private markets firm described “asset-heavy” decarbonisation investment as one of its picks.

The report states: “The last two decades of growth in decarbonisation efforts were generally asset-light, driven mainly by advances in software and technology. Those advances, which supported digitalisation and services, will still be required to continue fuelling growth. However, the climate investing required to really make a difference at scale is likely much more asset-heavy in nature. This reality is largely linked to the requirements for decarbonising the traditional power generation, property, transportation, and industrial
sectors, as well as for upgrading existing global supply chains, buildings, and data centers for sustainability.”

KKR’s report also details its views on topics including artificial intelligence and industrial automation, as well as regional economic forecasts. Read it here.