Our Green Transition Chart Pack has been updated with the latest data and our analysis of recent developments.
2023 is on track to be the warmest year on record, but somewhat ominously the headwinds to the green transition have strengthened this year. Some of these will prove temporary, particularly as short-term policy interest rates start to come down. That said, recent political developments in the UK have underlined the inherent tensions between short-term political horizons and the long-term nature of the green transition. And while some of the upward pressure on renewables costs will subside in the near term as easing cycles begin, our new higher estimate of the real neutral interest rate, or R*, for 2030, underlines that the most favourable window of financing conditions for the green transition has passed.
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