Global | Geopolitical decoupling and renewable energy

Summary

In this global scenario where very little is certain, the transition to a decarbonized economy is also being called into question. The US decoupling in climate policies and the promotion of renewable energy seems clear.

Key points

• Key points:
• Key developments in the United States include its withdrawal from the Paris Agreement, the elimination of incentives for electric vehicles, or the US Environmental Protection Agency shifting its stance toward increasing the purchasing power of families.
• In parallel with this, Europe launched the Clean Industrial Deal to make decarbonization a driver of regional competitiveness. Meanwhile, China is continuing to pursue its long-term growth policy, which includes the green economy among its various levers.
• The trade chaos is part of a sustained trend over time, and not only in the United States. According to Global Trade Alert, the average annual number of restrictive regulations announced during this decade (through to 2024) is 75% higher than last decade.
• In the long run, the commitment to decarbonization is clear because it helps to resolve the other two vertices of the energy trilemma: security of supply (especially in the absence of fossil energy sources) and affordability.

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