https://www.bloomberg.com/news/newsletters/2024-10-21/the-big-climate-short
“On average, more hedge funds were short batteries, solar, electric vehicles and hydrogen than long those sectors. And more funds were long fossil fuels than were shorting oil, gas and coal.
Geopolitics is the key reason why the energy transition theme isn’t working out. China commands a dominant position in most of these sectors, and tariffs are spoiling the investment case.
With much of the supply chain for green technology now depending on China, the risk of a full-blown trade war targeting its products has become a direct threat to the financial appeal of clean energy, according to hedge fund managers interviewed by Bloomberg.”