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If high interest rates persist, transitioning to a net zero global economy will be even harder and more costly. The higher cost of borrowing negatively affects renewables and nascent technologies, compared to more established oil and gas, and metals and mining sectors, which remain somewhat insulated.
US Inflation Reduction Act bill set to boost CCUS uptake but more is needed to meet net zero goals by 2050
A five-year delay to the energy transition could see the global average temperature rise to 3°C above pre-industrial levels.
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