Haven’t verified this, but someone told me this is the single biggest down move in the EUA futures market ever:
What does it mean?
Probably that our priorities are shifting. Rapidly. National security-backed fiat money will be taking over from moral money in the near future (and hopefully we won’t be looking to 16-year old girls for policy guidance).
Merryn Sommerset Webb at Moneyweek has been onto this for ages. I said a while ago that ESG investors would have to start thinking in terms of ESGA (Environmental, Social, Governance and Ally). But really, now I think about it, it’s probably better to say ASG = Ally, Social, Governance.
The long and short of it is that by mothballing nuclear, shutting down gas storage, under investing in shale and other fossil fuel developments we handed ourselves the mother of all security vulnerabilities.
That’s not to say in the longer term we shouldn’t strive to shift our dependence on oil over entirely to renewables. But in the interim, we just weren’t ready.
Net zero policy was a bad idea. Some might even say it was sabotage.