Sustainability & Energy Transition

The Rising Heat and the Retreat from Net Zero

March 14, 2025

Companies Mentioned: BP, Morgan Stanley, HSBC, Wells Fargo, CF Industries, Woodside, ExxonMobil, Nutrien, LSB Industries, Dow, Fertiglobe, ADNOC, Linde, Air Products, Air Liquide, ABB, Yokogawa, PureCycle, Tesla, NextEra, Chevron, Chevron Phillips Chemical
Commodities Mentioned: Natural Gas, Crude Oil, LNG, Ethane, LPG, Hydrogen, Ammonia, Batteries, Solar Power, Wind Power, Recycled Polypropylene (R-PP), Polypropylene (PP), Critical Minerals

C-MACC Weekly Sustainability and Energy Transition Report

The Rising Heat and the Retreat from Net Zero

1st Topic of the Week: Global climate records will keep decarbonization on the agenda, but after many painful “learning experiences,” green enthusiasm is shifting to a strategic, pragmatic path—less hype, more precision.
2nd Topic of the Week: Europe’s EV policy shift signals a retreat from urgency, providing its legacy automakers’ with short-term relief, but it will not eliminate their challenges with building out competitive EV manufacturing.
Otherwise – Consumer buy-in is crucial for global decarbonization efforts to prove successful, as discussed in a UK study on this topic. We also discuss recycled US plastic premiums and battery storage market developments.

Exhibit 1: February 2025 average global surface temperature ranked third-warmest for February and second-warmest for Dec-Feb since global records began in 1850 – will further increases cause a post-Trump reversal in policy?