Skip To Content

Solving the Energy Challenge

The soaring demand for energy presents economic, environmental and security issues. More efficient technologies may be the answer, says Sarbjit Nahal of BofA Merrill Lynch Global Research.

The world is facing an energy crisis, with global demand expected to grow dramatically over the next two decades. But in a resource-constrained world, energy demand needs to adjust to limited supply says Sarbjit Nahal, head of thematic investing for BofA Merrill Lynch Global Research. "We believe that energy efficiency – reducing the amount of energy required to provide products and services – is the logical response," he says. "We also believe that the recession is making 'less is more' the maxim of our era, and that energy independence and security are contingent on energy efficiency."

Nahal also notes that increased energy efficiency is a boon to economic development and competitiveness, helping to combat rising energy costs and protect the environment. "End-use energy efficiency offers the greatest potential to lower both energy demand and CO2 emissions," he says. And while there has been a lot of work on developing alternate sources of energy and sustainability in recent years, Nahal also notes that "two-thirds of the economic potential to improve energy efficiency remains untapped," according to the International Energy Agency.

Nahal points to seven industries that could benefit from the shift to greater energy efficiency, highlighting the range of opportunities open to investors who are interested in tapping into the theme:

  • Automobiles
  • Buildings
  • Industrials and Integrated Plays
  • Information Technology
  • Lighting and LEDs
  • Smart Grid and Energy Storage
  • Transport – Bus, Rail, Shipping and "Light-weighting."

Any information presented in connection with BofA Merrill Lynch Global Research is general in nature and is not intended to provide personal investment advice. The information does not take into account the specific investment objectives, financial situation and particular needs of any specific person who may receive it. Investors should understand that statements regarding future prospects may not be realized.


The investor should note that investing exclusively in one sector or industry involves additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks. Any discussions concerning investments should not be considered a solicitation or recommendation by Merrill Lynch and may not be profitable. It is important that you consider this information in the context of your personal risk tolerance and investment goals. Before acting on the information provided, you should consider suitability for your circumstances and, if necessary, seek professional advice. Past performance is no guarantee of future results.


You need to answer some questions first

Then we can provide you with relevant answers.

Get started