How the Energy Transition Could Reshape Companies’ Cashflows

The energy transition and carbon pricing are driving technology disruption, reshaping demand for goods and services, and already impacting corporate cashflows. But what does that all mean for costs and revenues? That’s the question that BNEF’s Transition Risk and Opportunity Outlook, a new annual report, seeks to answer. Drawing on BNEF’s proprietary Transition Risk Assessment Company Tool (TRACT) and Carbon Price Exposure Tool (CPET), the report models how the energy transition could impact cashflows over the coming decade. Specifically, it considers how finances for five major sectors – electric utilities, coal, automotives and aviation, oil and gas, and metals and mining – could transform under BNEF’s Economic Transition Scenario. Here are three key takeaways from the report. 1. Chinese automakers benefit from a head start in capturing global EV demand, unlike European peers Risks arising from the energy transition differ from one region to another. The automotive…