A US Climate Policy – Can It Be True? Can It Last?

Companies Mentioned: Gulf Coast Sequestration, Air Products, Linde, Air Liquide, Sealed Air, Aker Carbon Capture, Talos Energy, Denbury, Summit Carbon Solutions, Navigator, Bloom Energy, FuelCell Energy, Plug Power, Ballard, Freeport LNG, Williams, Siemens Gamesa, Vestas, Berry Global, Enterprise Products, Oxy, Livent, GM, Eastman, Olin, Shell, TotalEnergies, ExxonMobil, Chevron, Equinor, Repsol, bp, Valero

The Inflation Reduction Act – the reworded and watered-down climate policy for the US – stands a chance of passing. We think it could drive some real action.
We suspect there will be much more debate about the tax aspects of the bill than the climate piece, and much of the climate piece could drive real investment.
We like the changes to 45Q as we think the incentive is now more equitable and does not penalize the smaller emitters: the higher value will drive investment.
We look at why some of the proposed materials investments matter – yet more shortfalls in renewable power installation – good for coal, but tighter natural gas.
Otherwise, it’s reporting season, and we see many presentations displaying how well companies think they are doing on the ESG front – we are seeing a lot of fluff.

See PDF below for all charts, tables and diagrams