Sustainability, Energy Transition, ESG

Regulatory Uncertainty: Governments are Constraining the Activity They Are Pushing!
June 7, 2024
Companies Mentioned:
Fulcrum BioEnergy, Danimer Scientific, Aramco
Commodities Mentioned:
Copper, Batteries, Hydrogen, SynGas, Coal, EVs, Wind, Solar, Nuclear, Ammonia, Lithium
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, Hydrogen, ESG Investing, Climate Litigation, Clean Fuels, Critical Minerals

C-MACC Weekly Sustainability and Energy Transition Report

Regulatory Uncertainty: Governments are Constraining the Activity They Are Pushing!

  • 1st Topic of the Week: Our weekly update of sustainability sector stock indices shows weakening momentum – investors see the challenges. While Europe and the US are actively pushing energy transition and other sustainability agendas, the agencies within governments that police permitting, tax policies, and other critical path gateways are slowing activity – those who invested too early are increasingly concerned about survival.  
  • 2nd Topic of the Week: The same may be true in the battery and lithium chain, as we could face a period where supply runs ahead of demand, even if the longer-term outlook is robust. The challenge will then be for those who have jumped the gun and spent too much too quickly. There may be several opportunities within transition to pick up distressed assets with much better market timing.
  • Otherwise: We look at why carbon capture investments are following the money, why hydrogen is following the power but could also be moving down a challenging transport path, and why the sectors are so volatile.

Exhibit 1: The downward trend is uniform for all but water, which is an old industry rather than a new one

Source: Corporate Reports and C-MACC Analysis

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