C-MACC Weekly “CRETER” (Climate etc.)
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