Back In A Holding Pattern – Concerning For Medium-Term Supply

C-MACC Weekly “CRETER” (Climate etc.)

Back In A Holding Pattern – Concerning For Medium-Term Supply

• A likely by-product of the lack of firm commitments at COP26 will be hesitancy to deploy expansion capital – leading to more material & energy shortages.   
• Companies remain hesitant to deploy capital in industries with significant emissions because of shareholder pressure and more challenging capital markets.
• The Global Economy should grow, and renewable energy additions are unlikely to keep pace. Renewable material additions are progressing even more slowly.  
• Even with broad agreement on carbon values and support for cleaner fossil fuels, we are unlikely to get investments moving fast enough to prevent shortages.
• Otherwise, we look at more clean hydrogen, the continued rise of a poorly regulated ESG investment base, food/agriculture, and carbon values – again.

See PDF below for all charts