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Divergent climate policies to drive a chaotic transition
- Investment Management
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- 31.03.26
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February delivered two divergent climate‑policy decisions: the European Union (EU) strengthened its long-term decarbonization trajectory by adopting a legally binding 2040 greenhouse gas (GHG) reduction target, while the United States (US) moved to unwind the central legal foundation for federal GHG regulation. Despite their policy divergence, both the EU and US face the same underlying energy trilemma—balancing sustainability, security of supply, and affordability—and right now, both are feeling pressure on security of supply and affordability. This growing emphasis on energy security and affordability...