Since we began our more dedicated ESG and Climate work we have challenged one of the fundamental beliefs of the “green” energy advocates, which is the ready availability of abundant cheap clean power quickly. Our concern has been that at a global level the demand for renewable power is likely to grow so quickly that the industry cannot keep up, and while the expected learning curve shape might continue at a process, delivery, and assembly level, capacity constraints would overwhelm these gains.
We began talking about raw material limitations earlier in the year and have focused on it intensely in recent reports – including our Daily from yesterday and the ESG and Climate piece from yesterday. The inflationary fears around metals (and around shipping constraints) are now mainstream, with good coverage in the FT today and on CNBC yesterday.
Source: Bloomberg, C-MACC Analysis, May 2021
