Brown Zombies and environmental productivity

Watching the Tides - Marchel Alexandrovich

When it comes to climate change, one implication from the US election is that it pushes global net zero further out of reach. The details of what climate policy will look like under Trump are yet to be flushed out, but it is obvious that the phasing out of fossil fuels and cutting GHG emissions will not be at the forefront of what the new administration focuses on. Lower emissions may yet materialise, if the costs of renewables continues to fall and there is action at the US state level. But at the federal level, tackling climate change will not be a priority.

Politically, Europe is in a different space. But even if its own commitment to net zero remains firm (which could widen the gap between US and European energy prices even further; see our recent Substack on Mario Draghi’s report), economies in the region, and elsewhere in the world, must prepare for the likelihood of more frequent and extreme climate related events. Which means that investors need to start paying attention to the…