Goldman Sachs picks 20 stocks to ride Europe's push toward a greener future

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The European Union's landmark plan to become climate-neutral by 2050 promises to overhaul the bloc's economy, and 20 regional companies are well placed to capitalize on these changes, according to Goldman Sachs.

The EU Green Deal, which Goldman termed the "largest economic stimulus Europe has seen since the Marshall Plan," aims to achieve net zero carbon emissions by 2050 and a 50%-55% cut in emissions by 2030, compared to 1990 levels.

Goldman analysts suggested that the boost to capital expenditure brought about by the 27 EU member states' National Energy Plans could see a spike in earnings for European utilities much sooner than expected.Courtesy of Vestas Wind Systems A/Sby 2050 promises to overhaul the bloc's economy, and 20 regional companies are well placed to capitalize on these changes, according to Goldman Sachs., which the U.S.

Along with protecting long-term wealth by tackling climate change, Goldman analysts believe the plan — which they "conservatively estimate" will cost in the region of 7 trillion euros — will boost short-term GDP and employment thanks to a "major investment wave in power infrastructure, buildings renovation, automotive and industrials.

The note projected that NEPs imply around a 65% capex acceleration in clean infrastructure in Europe versus the current run rate, with "visible effects" as of 2021. "As the support for 'net zero' climate policies continues to gain strength, we adjust our estimates to reflect the investment tailwinds from the NEPs , with our new forecasts implying c.2.5% upgrades in 2025-30 estimated earnings per share on average," the note said.

 

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Europe getting cleaner and America getting dirtier

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