Decarbonomics

Climate change is likely to become the dominant macro theme of the 2020s. Not only will increased physical disruption to the world economy boost consumer prices and make inflation more volatile; there are also big risks associated with the transition to a “low-carbon” economy. 

The decarbonization of heavy industry is approaching a tipping point that also entails a paradigm shift for global trade – a sea change from seven-and-a-half decades of multilateral trade policy and one that will raise DM-EM tensions.

Global trade is in the midst of a paradigm shift that will drive tectonic changes ahead for high-emissions heavy industry, sped by the impending arrival of carbon border taxes. 

We go long CBL Global Emissions Offsets futures (GEO) which allow for the delivery of CORSIA eligible voluntary carbon offset credits.