C-MACC Weekly “CRETER” (Climate etc.)
Will Political Discord Prevent A Major Climate-Related Investment Opportunity In The US?
- Carbon abatement costs could change the competitive cost landscape for many materials, especially chemicals, favoring the US, Canada, and the Middle East.
- Access to low-cost hydrocarbons could combine with relatively attractive CCS economics to increase the production cost advantages in these locations.
- Ethylene costs will also be impacted by the difference between carbon taxes and carbon tax offsets – with offsets, there are fewer penalties for high CO2 processes.
- Post COP26, there will be opportunities in fossil fuels, especially LNG, but the fuels will need to be low carbon – this is another major opportunity for the US.
- Otherwise, we look at recycling polymer rates versus likely demand, another low carbon ethylene investment, hydrogen demand, and board responsibilities.
See PDF below for all charts