Market Perspectives: Building Resilience in a Changing Climate

Climate resilience is becoming an investment opportunity across energy, infrastructure and natural capital, not merely a risk to be screened.

• In Q2 2026, Spain recorded nearly 600 hours of negative electricity prices, while Belgium saw prices exceed €1,000/MWh during a 15-minute settlement period as solar output declined later in the day.
• Solar supplied 25% of EU power in June for the first time, but grid investment was still estimated to be 5% below the level required in 2025, increasing the importance of interconnection, storage and flexibility.
• Physical climate risks can spread beyond individual assets: research on 53 US assets found that wildfire smoke reduced solar PV electricity generation by an average of 8.3% even without direct fire damage.
• Resilience therefore requires action throughout an asset’s life, including climate-aware design, vegetation management, thermal inspections, monitoring and emergency planning.
• At Foresight’s Knock Fell site in Scotland, more than 100 hectares of peatland are being restored alongside a multi-purpose forest expected to sequester 24,000 tonnes of additional carbon over 100 years and produce 11,000 tonnes of timber over 40 years.

Takeaway: Long-term real-asset investors should assess climate dependencies at portfolio level and direct capital toward the grid, storage, adaptation and natural systems needed to keep assets productive as conditions change.