C-MACC Weekly “CRETER” (Climate etc.)
Back In A Holding Pattern – Concerning For Medium-Term Supply
- A likely by-product of the lack of firm commitments at COP26 will be hesitancy to deploy expansion capital – leading to more material & energy shortages.
- Companies remain hesitant to deploy capital in industries with significant emissions because of shareholder pressure and more challenging capital markets.
- The Global Economy should grow, and renewable energy additions are unlikely to keep pace. Renewable material additions are progressing even more slowly.
- Even with broad agreement on carbon values and support for cleaner fossil fuels, we are unlikely to get investments moving fast enough to prevent shortages.
- Otherwise, we look at more clean hydrogen, the continued rise of a poorly regulated ESG investment base, food/agriculture, and carbon values – again.
See PDF below for all charts