2022 – Policy Key, But Inflation Will Distract – Maybe Beneficially
- Our ESG and climate coverage in 2021 was generally balanced but trended more toward policy in 2H21, partly due to holes left by COP26 and also due to inflation.
- Rethinking energy transition policy in the light of energy shortages and higher prices will be critical in 2022 – failure will drive underinvestment & higher prices.
- Coal or heavy hydrocarbons to hydrogen with CCS looks like a win all around as it could create unsubsidized hydrogen minimizing natural gas or renewable power.
- It will be interesting to see how polymer companies rate their challenges in 2022 – will plastic waste be more or less of a stakeholder issue than carbon footprints.
- Otherwise, we look at the rise in “intent” for CCS but the lack of investment, wind and solar installation rates, ESG definitions (again), and energy M&A.
See PDF below for all charts, tables and diagrams