C-MACC Weekly “CRETER” (Climate etc.)
It’s All Happening in Egypt, But Will Progress Become Entombed
- The public alignment at COP27 likely masks country concerns around how to manage both climate goals and current energy, food, and inflation issues.
- Accelerating energy transition is likely to make something already expensive more so: we use hydrogen as an illustration – suggesting that low costs are far off.
- We are concerned that growth spending will stop – for new plant and equipment and R&D, as environmental compliance consumes more cash and legal costs rise.
- We note that fertilizers and lithium are the bright spots for investors today, but other critical metals seem to have bottomed – EV demand is a significant driver.
- Otherwise, we look at declining recycled polymer prices, oxy-combustion, methane emissions, DAC, US coal-based power, and ESG investing’s demise!
See PDF below for all charts, tables and diagrams