Carbon Capture – Another Government-Led Disappointment?

As calls for more CCS grow in Europe and the US, there are signs that the most significant impediments might be regulatory approvals and legal challenges.
We view the current upheaval in ESG investing as primarily due to regulator inaction and legal challenges – this same process could slow emission abatement.
The IRA continues to drive wedges between Europe and the US in terms of expected competitive advantages in the US – we think Europe has bigger problems.
The CBAM may be bad timing for Europe, especially if some of its basic industries shut down and it becomes dependent on imports that could now be taxed.
We also note increasing agreements to buy renewable power – will demand overwhelm supply? We address some ESG questions and look at low-carbon food.

See PDF below for all charts, tables and diagrams