The green industrial revolution

According to Hamish Chamberlayne, Head of Global Sustainable Equities at the investment firm Janus Henderson, the next economic cycle will be driven by the green industrial revolution, meaning society will make a strategic shift from a fuel-based economy to a low-consumption economy of carbon, a digital and e-infrastructure society.

"We expect an investment boom in these areas," says Chamberlayne.

Analysts also expect some semiconductor manufacturing to gradually move to the United States and Europe, a strategic move to shed dependence on China.

Renewable energy, a solution for the crisis

The energy crisis will continue to be an important topic in 2023. Technology will play a key role in reducing the effects of the crisis and finding cheaper and more sustainable solutions.

The European Union will invest 1,800 billion euros in the Green Deal, and the United States will invest 370 billion dollars in the US Inflation Reduction Act, and they will have very clear green objectives.

Investment in renewable energy projects increased by 33% in 2022. Chamberlayne expects any renewable energy resource to be a clear focus for investors in 2023.

Electrified transport

Electric vehicles are gaining more and more market share in recent years and are becoming more attractive. In 2021, Europe had 16.5 million new electric cars, 3 times more than in 2018.

"We expect demand for fuel, which represents 60% of market consumption, to decline over the next decade," explains Chamberlayne.

Thus, the analyst believes that this moment will mark a turning point in the market that will lead to the electrification of transport and increased investment in this area.

In the next decade, 50% of automobile production will be electric, the representative of the investment fund mentions.