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Why do Renewable Power companies also have some climate risk?

Answer

Transition risk is systematic in nature, impacting the macroeconomic factors (e.g., GDP, inflation, interest rates, etc). So, whilst the renewable power assets themselves may not be exposed to transition risk directly, the way the economy is expected to evolve in these scenarios will still have a significant impact on their valuations.  

Besides, infrastructure assets within the Renewable Power sector are sensitive to physical risks just as assets in any other sector. 

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