Fidelity: Decarbonising logistics - an overlooked real estate opportunity
Often overlooked, Europe’s logistics centres could become powerful engines of the energy transition: cutting consumption, lowering emissions and creating compelling investment opportunities.
By Adrian Benedict, Head of Real Estate Solutions, Fidelity International
Despite the current geopolitical volatility around the world and the political upheaval that comes with it, the energy transition is well underway. Global investments in the transition to renewable energy reached a record $ 2.3 trillion in 2025, up 8% from 20241 and we are only at the very start of this multi-decade shift.
But the money going into this transition is not spread across sectors equally. Power generation receives the lion’s share of the capital, as much of the required carbon abatement can be addressed by changing the way power is produced and distributed. However, power consumption is an equally important part of the equation.
Rather than competing for all that capital that is going into power generation, investors can address parts of the market that are starved of capital. It is not just the total level of consumption, but also how it is consumed that can provide meaningful improvements. Yet, this area remains underinvested.
There seems to be a colossal volume of capital going into the energy transition, and when we look at it, roughly three-quarters of that capital is focused on power generation in its various forms. Of the $ 2.3 trillion invested in the energy transition, an estimated $ 1.5 to 2 trillion is directed toward power generation, while only one quarter targets consumption. Of that one quarter, close to 80% goes into electric vehicles.
With rising energy costs in Europe, particuarly since the start of the Ukraine conflict, occupiers increasingly value lower operating expenses.
Yet, real estate is among the largest consumers of fossil fuels, driving demand for greener and energyefficient buildings. While office buildings have attracted most attention, there is an equally high demand in the logistics sector.
We focus on acquiring high-quality logistics assets in key European hubs and improving their energy efficiency through solar panels, heat pumps, LED lighting, automation and EV charging infrastructure. These upgrades typically require capital expenditure of up to 20% of a property’s value but can increase rents by 30-40%, and enhance exit valuations.
The investment case is driven by strong tenant demand for energyefficient buildings. With rising energy costs in Europe, particularly since the start of the Ukraine conflict, occupiers increasingly value lower operating expenses. Lease extensions are often secured from existing tenants who can clearly see the savings generated by refurbishment projects.
We have developed 21 climate impact metrics to transparently measure and demonstrate the environmental improvements delivered through our investments. These upgrades are not simply ESG initiatives. They help capture tenant demand for more efficient, lowercarbon buildings while supporting rental growth and asset value appreciation.
As data centre developers compete for large industrial land plots and gridconnected sites to support surging AI demand, we believe our focus on smaller, existing, logistics assets in prime urban locations reduces exposure to that competition.
Overall, our philosophy sits at the intersection of two major structural themes: decarbonisation and deglobalisation, offering investors the potential for attractive long-term returns while supporting the transition to a lower-carbon economy.
- BloombergNEF, Energy Transition Investment Trends, 2026