C-MACC Weekly “CRETER” (Climate etc.)
Government ESG/Energy Inaction Will Drive More Inflation
- The lack of ESG definitional oversight will cause investors and fund managers issues when it eventually emerges, but it is currently most risky for corporates.
- With unclear boundaries and misinformation, corporates can be easily (and unfairly) criticized. The reaction to this is generally conservative capital strategies.
- Government interference is not something companies/industries desire but is needed to benefit the ESG and energy transition evolution, especially for energy.
- Some of the larger transition goals – renewable power dependence and green hydrogen – will fail to meet objectives if activists and litigators step in.
- Otherwise, we discuss a few carbon capture plans (uneconomic today), several ESG claims, rising coal consumption, and ambitions for chemical decarbonization.
See PDF below for all charts, tables and diagrams