I see more and more studies assessing the EU green transition using macro (ie. DSGE) models. They share one puzzling feature: aggregate investment declines sharply during the green transition. Wasn’t the transition about large green investment needs? A thread 🧵 Example. The ECB recently published a nice article where 6 different macro models are used to assess a carbon pricing policy in the Euro area. The chart shows economy-wide investment across models. It falls ⏬.

Have you also wondered how much funding the EU would need to “match” the US’ Inflation Reduction Act (IRA) subsidies to clean tech manufacturing? A quick thread with one clue #EUCO Let’s take the production of Li-Ion battery cells, one of the most affected key sectors. Chart shows projected European demand and supply (incl. UK, Norway), from an excellent T&E report.

The US’ Inflation Reduction Act (IRA) has put the finger on some sore spots in Europe. Suddenly weaknesses of the EU Green Deal became apparent, compounded by the energy crisis. Here a thread about why we are back discussing the need of more EU funding. First, what’s the US’ IRA? It puts on the table hundreds of billion of dollars in subsidies up to 2032 for key climate sectors: zero-carbon power, clean tech manufacturing, hydrogen, biofuels. Estimate for climate: ~$300 bn, not all capped.

Corriere: “Superbonus, l’investimento avrà un ritorno economico triplicato”. Edilportale: “Il Superbonus non è un costo per lo Stato, ma contribuisce all’innalzamento del Pil.”

È proprio così? Thread 🧵
edilportale.com/news/2022/07/n… Gli studi di CNI e Nomisma sugli impatti del Superbonus sono quello che molti volevano: una stima dei benefici economici e fiscali di questa misura. Secondo Nomisma, il Superbonus ha generato un valore economico di 124,8 mld euro (7,5% PIL) a fronte di una spesa di 38,7 mld. 2/x

Come ridurre la domanda di gas nella UE di 1/3 nei prossimi cinque anni? Nuovo studio di @AgoraEW con dati, analisi e proposte. Qui un riassunto 🧵 agora-energiewende.de/en/press/news-… È possibile eliminare un ammontare di consumo di gas pari all'80% dell'import UE dalla Russia in modo permanente entro 5 anni con un mix di interventi nell'edilizia, industria e settore elettrico. 2/x

In the #REPowerEU Communication the @EU_Commission claims that the FF55 targets to "deploy 480 GW of wind and 420 GW of solar capacities" by 2030. In FF55 modelling (similar in CTP) I rather see solar installed capacity increasing by 246GW and wind by 250GW in 2021-30.
1/5 🧵 Even if new deployment and change in installed capacity is not the same, i.e. retirements, (difference should be small as additions >> existing capacity), there is something off in these numbers. Am I the only one puzzled? 2/5