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Real Asset Research A Mile Deep
THE EU'S PROPOSED CARBON BORDER ADJUSTMENT TAX (PART 1)
The European Union (EU) may soon push forward with a carbon border adjustment mechanism (CBAM) if it can ensure compliance with the World Trade Organization (WTO). The EU parliament backed the CBAM proposal in March, and the European Commission is set to make a formal legislative proposal for a CBAM shortly. We anticipate that Parliament and the Commission will begin negations in the second half of the year.
BIG TALK OR REAL ACTION? READING THE TEA LEAVES OF CLIMATE REGULATION
As investors seeking to profit from a systemic transition in the global economy from a high environmental impact footprint to a low environmental impact footprint, we are continuously returning to a framework for analysis defined by the dual economic and environmental sustainability constraints. Within that framework, there are additional constraints created by regulation, technological, politics, and geopolitics. A holistic understanding of these constraints helps us focus on the facts on the ground; it helps us understand what is instead of just understanding what people think ought to be.
BOLD CLIMATE STIMULUS BY THE EU
On May 27th, the European Commission proposed the most significant fiscal stimulus in Europe's history with climate investment at the heart of the bloc's recovery effort.