James Aitken: Non-renewable capital costs will rise as renewables re-rate aggressively
James Aitken · James Aitken – Tour Around the World from a Small Island (Capital Allocators, EP.122) · Feb 10, 2020 · at 13:56
Macro strategist James Aitken analyzes the structural capital flows and market re-ratings driven by institutional ESG mandates.
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“The cost of capital for non-renewable businesses is going to go up, and the cost of capital for renewable businesses is going to go down, and obviously, Ted, in a low interest rate world, the multiplier effect of that is going to be profound, because the re-rating of renewable firms will be aggressive, as will the de-rating of anything that ticks the non-renewable box.”
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