Feb 18, 2021

2021: A New Space Economy | Morgan Stanley

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2021 Global Economic Outlook: The Next Phase of the V 1. A Growing Relationship Between Space and Climate Change

Space and sustainability have aligned. With more investors focused on environment, social and governance (ESG) factors, satellite imagery may provide them with key data on the environmental impact of company activities. Satellite applications include monitoring greenhouse-gas emissions from companies and regions, helping utilities optimize renewable energy infrastructure and mining data to project how climate change could affect particular industries.

“ESG is becoming table stakes for businesses, and satellite imagery helps fill the data gap,” says Jonas. “Developing technologies from both public and private companies could offer a new channel of information for investors interested in pursuing both sustainability and returns.”

2. Increased Capital Formation

Despite COVID-19 , last year saw the biggest private investment in space to date, with space capital formation and infrastructure developing on multiple fronts.

First, investors are rethinking “old” vs. “new” space. It’s now less about the disruption and replacement of traditional players, and more about how the capabilities of new entrants complement them. “There’s enough room for the exquisite legacy capabilities of aerospace outfits and the more affordable new commercial players,” says Jonas.

 

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