Energy Transition Will Now Take Longer! What Europe Does Next Will Be Interesting

C-MACC Weekly Sustainability and Energy Transition Report

Energy Transition Will Now Take Longer! What Europe Does Next Will Be Interesting

• 1^st Topic of the Week: The US election win is not the only challenge facing energy transition goals as COP29 convenes next week, but it may signal the end of the road for many companies that are too levered and have invested in anticipation of faster action – some of the stock slides so far are likely not over. Now we watch the weather, but we also need to watch Europe.
• 2^nd Topic of the Week: Critical Mineral and metal prices reacted well to the election with the likely realization that anything that can be done to boost US economic growth will also boost power and storage demand. Meanwhile, lithium is weaker and plentiful.
• Otherwise: We look at the challenges of chemical recycling in a shrinking European chemical industry, more power additions, derisking clean hydrogen investments – the Linde way, rather than the Air Products way.

Exhibit 1: The solar and EV sectors have taken a bashing (except Tesla).

Source: Capital IQ and C-MACC Analysis