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THE THOUGHTS THAT COUNT - THE BEST OF GLOBAL THOUGHT LEADERSHIP (MARCH 2023)




PUBLIC SERVICES & PUBLIC POLICY

Will the retained EU Law Bill undermine Sunak’s Windsor Deal? – Centre for
European Reform (Europe)

This article argues that the Retained EU law bill in its current form is
incompatible with the Windsor Framework. The authors call for UK Prime Minister
Rishi Sunak to make significant changes to the REUL bill or scrap it altogether.

Nothing to See Here: Australia's Broken FOI System – The Australia Institute
(Australia)

FOI decisions cost twice as much as they used to, three in 10 FOI decisions are
late and, when reviewed, one in two turns out to be wrong. A review of
Australia’s FOI system and culture is urgently needed.

Three key challenges facing Scotland’s new first minister – Institute for
Government (UK)

This article outlines the priorities facing the newly elected leader of the
Scottish National Party Humza Yousaf. Yousaf must build a new ministerial team
that unites his party, set out a credible independence strategy, and ensure
relations with the UK Government are reset and refreshed.

The Atlantic Canada Momentum Index – Public Policy Forum (Canada)

A new report by PPF looking at the unique socio-economic microclimate of
Atlantic Canada. Based on positive economic and social momentum gathered during
the pandemic, which made Atlantic Canada a welcome outlier, the authors of this
report identified 20 key social and economic indicators to evaluate whether the
‘Atlantic Canada Bubble’ was a long-term positive trend. The results indicate
that this is indeed the case and Atlantic Canada’s indicators paint a bright
future for the region.


UK SPRING BUDGET 2023

Spring Budget 2023 – Institute for Fiscal Studies (UK)

The IFS gathers a number of materials as a response to the Spring Budget 2023,
including a podcast episode analysing the Budget. In his opening remarks, IFS
Director Paul Johnson notes that, while the OBR was more positive than many
other forecasters about medium-term growth, the overall outlook for Britain’s
public finances still looks difficult. Despite the tax burden nearing its
highest-ever level and with very tight spending from 2024, debt is not falling
due to high debt servicing costs and sluggish nominal growth. He notes that the
OBR predicts that the policies aimed at getting people back into work will only
result in about 100,000 people re-entering the workforce, a fraction of the
numbers lost in recent years. Finally, Johnson warns that British households
will feel ‘continuing pain’ in the next year, with prices remaining much higher
than two years ago while pay has not caught up, and ‘stealth taxes’ due to take
effect next year.

We’re going on a growth Hunt: Putting the 2023 Spring Budget in context –
Resolution Foundation (UK)

The Resolution Foundation assesses ‘whether the Chancellor has successfully
delivered on his central objective of boosting growth through higher employment
and business investment.’ It concludes that the Chancellor has undoubtedly
focused on policies that encourage more people into work, but that ‘Britain’s
economy remains stuck in a deep funk: people may be supported into work but they
are getting poorer, paying more tax and seeing public services cuts.’

Does Jeremy Hunt’s budget have a growth strategy? – Institute for Government
(UK)

This article applauds Hunt’s efforts to boost the UK labour supply, whilst
insisting the Chancellor must build on the Windsor Framework to restore broken
trade links. The Budget may not have been radical, but it takes many small,
difficult steps by which growth can be pursued, argues the IfG.

New analysis shows £22bn in hidden cuts to public services in today’s budget –
New Economics Foundation (UK)

This article asserts that failure to increase public sector pay in line with
inflation will hit Wales and the Northeast twice as hard as London between 2022
and 2024. The Spring Budget will bring a further £21.6bn in unannounced cuts to
public services by 2027/28, compared to the level of real-terms spending
announced by the Chancellor.

Spring Budget 2023: Who will benefit and who is left behind? – National
Institute for Economic and Social Research (UK)

In light of the two big announcements in the Budget, getting people back into
work and business investment, this article looks at the other main takeaways
from the Chancellor’s statement. It asserts that the lack of policy
announcements on public services and on domestic energy policy are curious, that
the Budget should have reformed the Energy Price Guarantee, and that increasing
real incomes should be vital to the nation’s economic recovery.

Budget 2023 – was that it? – TUC (UK)

This article asserts that the Budget ‘saw the Chancellor speak about a high-wage
and high-skills economy but do nothing to deliver it. The UK is still in the
longest pay squeeze for more than 200 years. And our public services are still
run-down and understaffed.’


ECONOMY, WELFARE & TAXATION

Fast Facts about the U.S. Federal Debt – Cato Institute (USA)

“High and rising government debt slows growth, crowds out private investment,
limits the government’s ability to respond to unexpected emergencies, and
elevates the risk of a sudden fiscal crisis, where investors would lose
confidence in U.S. Treasury bonds and the U.S. dollar. This fact sheet lays out
everything legislators and the public need to know about the U.S. federal debt
to help them examine the unsustainability of the U.S. budget.”

The need for a ‘new deal’ for businesses – IPPR (UK)

Despite headlines, the British economy continues to have many strengths in the
face of profound economic challenges. This article looks at how the UK must
pursue faster, fairer and greener growth through a formalised ‘new deal’ with
businesses.

Prime Ministers and Government Spending: 2023 edition – Fraser Institute
(Canada)

This year’s instalment of the Fraser Institute’s report on per capita federal
government spending highlights how Prime Minister Justin Trudeau’s
administration is on track to record the five highest levels of per capita spend
(2018-2022) in Canadian history. The report also provides an overview of
spending in previous years and under past Prime Ministers.

President Biden’s Budget Charts a Needed Course Correction as 2025 Tax Debate
Begins – Center on Budget and Policy Priorities (USA)

CBPP welcomes President Biden’s budget proposal for FY2024, saying that it
represents a much-needed course correction from the path of trickle-down
economics set by the 2017 tax law and towards a tax regime which “raises more
needed revenues, is more progressive and equitable, and supports investments
that make the economy work for everyone”.

Reform barometer 2023 – The EU’s Global Competitiveness under Threat – Business
Europe (Europe)

This year’s instalment of the Business Europe reform barometer finds that around
90% of member federations consider the EU investment environment to be less
attractive than three years ago. The report also enumerates a series of other
findings on a country-specific basis relating to regulatory burdens and ease of
doing business metrics.

Are state tax cuts boosting household spending? – Brookings Institution (USA)

35 states and the District of Columbia cut state taxes in 2022, leading to
speculation that state fiscal policy is responsible for household spending’s
remarkably good performance despite tighter monetary policy, a weak stock market
and the end of pandemic-era stimulus cheques. Brookings pours cold water on this
assumption, arguing that the state tax cuts have not been so large as to have an
impact on the macro-economy.

Capital losses: The role of London in the UK’s productivity puzzle – Centre for
Cities (UK)

Centre for Cities’ report, Capital losses: The role of London in the UK’s
productivity puzzle, published in partnership with EC BID, shows that over the
last 15 years London’s productivity growth has both trailed its international
competitors and has been the main cause of the UK’s productivity struggles,
costing the national economy tens of billions of pounds per year.’

Medicare and Social Security Are Responsible for 95 Percent of U.S. Unfunded
Obligations – Cato Institute (USA)

“The Financial Report of the United States Government (also known as the
Financial Report) raises significant concerns about the country’s long‐ term
financial health with increasing deficits and debt levels. Over the next
75 years, U.S. taxpayers face nearly $80 trillion in long‐ term unfunded
obligations. What’s more, 95 percent of this unfunded obligation is driven by
only two federal government programs: Medicare and Social Security. Here are
five key takeaways from the Financial Report.”

Why is federal spending so hard to cut? —There’s a right way and a wrong way –
Brookings Institution (USA)

With Democrats and Republicans facing off over raising the federal debt limit,
Brookings breaks down why it is difficult to reduce federal spending, arguing
that across-the-board cuts are ‘perhaps the worst way to cut spending’.

The Cost of Business Subsidies in Canada – Fraser Institute (Canada)

This report analyses the cost of business subsidies in Canada across federal,
provincial and local government. It finds that between 2007 and 2019 spending on
business subsidies totalled $352.1 billion, $24.6 billion more than the amount
spent on national defence in the same period. The authors go on to argue that
these levels of spending on subsidies are not sustainable and actually damaging
to the economy, urging the Canadian public sector to reconsider the costs these
subsidies have for the taxpayer and already-strained government budgets.

House Republicans’ Pledge to Cut Appropriated Programs to 2022 Level Would Have
Severe Effects, Particularly for Non-Defense Programs – Center on Budget and
Policy Priorities (USA)

CBPP warns against purported plans by House Republicans to cut appropriated
programmes to 2022 levels in 2024, a pledge made by Congressman Kevin McCarthy
as part of his campaign to be elected as House Speaker and made more salient by
Republicans’ calls for deep spending cuts as a condition for raising the debt
limit. This report suggests that such deep cuts to federal spending would likely
have severe repercussions for a range of programmes still recovering from a
decade of austerity.

Biden’s Math of Just Taxing the Rich Doesn’t Add Up – Cato Institute (USA)

President Biden’s budget plan for FY2024 raises about $1.8tn from non-corporate
taxpayers over ten years, but Cato finds that, despite the 20 new and expanded
taxes contained in the budget, the plan does not raise enough revenue to cover
the new spending proposed, much less reduce the $20tn deficit over the next
decade.

The GCC’s 2023 Economic Agenda – Gulf Research Center (Saudi Arabia)

This article summarises some of the economic and socio-political pressures that
economic planners in the Gulf Cooperation Council (GCC) must prepare for –
despite fiscal measures such as price caps on essential items which have kept
households in the region relatively insulated from the worst ravages of
inflation, GCC states remain highly import-dependent and are therefore very
vulnerable to food supply shocks.


PENSIONS

Raising the state pension age risks trapping millions in poverty – Institute for
Fiscal Studies (UK)

Plans to further increase the pension age to 68 (which would have taken place
between 2037 and 2039) are likely to be delayed by seven years. Delaying this
will cost the Government approximately over £60 billion. Strikingly, raising the
pension age from 65 to 66 led to almost a quarter of 65-year-olds ending up in
poverty. Clear trade-offs exist between government savings and the wellbeing of
pensioners.


EMPLOYMENT & LABOUR FORCE

How States and Unions Can Partner To Build the Public Sector Workforce – Center
for American Progress (USA)

With state and local governments struggling to attract and retain well-qualified
workers, the Center for American Progress argues that policymakers must tackle
several problems at the same time. Actions should include increasing state and
local government funding, combating Covid-19 burnout among public sector
workers, and closing the pay gap between the public and private sectors.

Measures to tackle labour shortages: lessons for future policy – Eurofound
(Europe)

As economies begin to recover from the Covid-19 pandemic, labour shortages are
becoming increasingly evident despite the impact of the war in Ukraine on energy
and commodity prices. This report looks at measures implemented at a national
level to tackle labour shortages in healthcare and information and communication
technology sectors, as well as those arising from the twin green and digital
transition. It assesses what measures are effective and explores the contextual
factors supporting or hindering effective policy implementation and outcomes.

Help Wanted, But Not Found: Emiratization in the UAE – Center for Strategic and
International Studies (USA)

This article delves into the issues private sector employers in the UAE are
facing in their efforts to comply with Emiratisation targets set by the UAE
Government. Despite incentives for employing UAE nationals, many Emiratis view
government jobs as more desirable than the private sector, with public sector
employees in Abu Dhabi earning as much as 40% more than those in equivalent
private sector jobs. This is complicating the Government’s efforts to fill 10%
of private sector roles with UAE nationals by 2026.

Tough Gig: Worker Perspectives on the Gig Economy – The McKell Institute
(Australia)

This research project involved one of the largest ever surveys of transport
workers in the gig economy in Australia. The 1,036 respondents came from the
food delivery, parcel delivery and rideshare sectors of the transport industry,
where workers are engaged via apps and algorithms to perform transport work for
which they are also required to cover their operating costs and equipment, such
as vehicles, safety equipment like helmets, fuel, phones and phone bills, and
other expenses. The survey examines pay, conditions, safety and flexibility
associated with this work.

Consult Within: Analyzing the Recent Decision to Localize Consultancy
Professions in Saudi Arabia – KAPSARC (Saudi Arabia)

“In October 2022, Saudi Arabia’s Ministry of Human Resources and Social
Development (MHRSD) issued a decision mandating the progressive localization of
consultancy professions up to 40% by the end of March 2024. Such targeted
localization (or Saudization) of specific professions is not extraordinary in
Saudi Arabia.”


LEVELLING UP

State of the North 2023 – Looking out to level up: How the North and the UK
measure up – IPPR (UK)

The UK continues to stand out internationally as the most regionally unbalanced
large, advanced economy. This report asserts that such inequality is not
inevitable and that reducing the UK’s regional divides is vital to unlocking
national growth.


HEALTH & SOCIAL CARE

A long way back: public satisfaction with health and care services at record
lows – Nuffield Trust (UK)

The latest British Social Attitudes (BSA) survey, carried out in 2022, reveals
public satisfaction with health and care services have fallen dramatically. From
a peak of 70% in 2010, overall satisfaction with the NHS has fallen to just 29%
– the lowest figure recorded since this question was first asked in 1983.
Satisfaction with individual NHS services is at record lows across the board,
while satisfaction with social care is the lowest of all with only 14% of the
public saying they are satisfied with it.

Procompetitive Health Care Reform Options for a Divided Congress – American
Enterprise Institute (USA)

The AEI makes recommendations for how Congress can reduce healthcare costs while
increasing competition, specifically focusing on procompetitive policies with
bipartisan potential, how these policies would make markets work better, and how
they would affect the federal budget. These are, in the AEI’s opinion, the most
plausible options for passage in the currently divided Congress.

Moving from exclusion to inclusion in digital health and care – King’s Fund (UK)

This article looks at the benefits that digital health and care can bring to the
sector. It asserts that digital technologies can make health and care services
more accessible, flexible, personable, more efficient, creating a better
experience for patients and staff.

Changing Medicaid’s Funding Structure to a Per Capita Cap Would Shift Costs to
States, Force Deep Cuts, and Leave Millions Uninsured – Center on Budget and
Policy Priorities (USA)

As part of their budget plan currently under development, House Republicans are
discussing radically restructuring Medicaid. One of the reforms under discussion
is changing Medicaid financing to a per capita cap, which, CBPP argues, would
come at the expense of millions of Americans who access healthcare through
Medicaid, jeopardise coverage, and shift costs to states and healthcare
providers.

Communities in Crisis: Lifeline QLD Supporting Those in Need – The McKell
Institute (Australia)

Australians have had an exceptionally challenging past few years, facing
numerous waves of the Covid-19 pandemic and increasingly frequent extreme
weather patterns and intense natural disasters. These difficulties have had
serious direct and indirect consequences for the mental health of the nation.
This report calls for the funding model for community response services, like
Lifeline, to move from a ‘crisis response’ model to one that is proactive and
regularised.

Reforming Military Health Care Costs: Issues for Future Research – RAND
Corporation (USA)

“The top three costs for the Military Health System (MHS) are health care
delivery costs, military medical personnel costs, and Medicare Eligible Retiree
Health Care Fund contributions. Determining how to curb burgeoning military
health care costs without compromising (1) access to and quality of care or (2)
the readiness of military medical personnel continues to be a priority for the
Defense Health Agency. The authors of this report conducted a literature review
and solicited expert opinions to outline four key policy areas in which further
research could be pursued to understand how to reduce MHS costs.”

A welcome NHS pay deal has taken too long to reach – Institute for Government
(UK)

The new pay deal offers nurses and ambulance workers a non-consolidated bonus,
as well as an NHS backlog bonus, in addition to a 5% consolidated pay increase
in 2023/24. This, ultimately, is good news for patients and workers, but this
article asserts that the government’s hard-line negotiation stance caused
considerable damage to staff morale and retention.


CHILDCARE

The Times They Aren’t A-Changin (enough): It is past time to value women’s work
equally – The Australia Institute (Australia)

The Australia Institute identifies 80 occupations in which men make up 80% or
more of the workforce; these occupations have an average salary above $100,000.
In contrast, no occupation where women make up that share of the workforce has
such a high average salary. The report recommends policies to promote greater
access to childcare and parental leave for both parents, family-friendly work
practices, and the lifting of wages for industries dominated by women – most
urgently in the care sector.

3 Ways States Can Expand and Sustain the Infrastructure Workforce by Meeting
Child Care Needs – Center for American Progress (USA)

Recent legislation, including the Inflation Reduction Act, Infrastructure
Investment and Jobs Act and CHIPS and Science Act, are poised to dramatically
expand the number of women and people of colour working in industries, such as
construction, clean energy and manufacturing, in which they have historically
been underrepresented. However, the construction industry has unique features,
such as unusual work hours, which make traditional childcare difficult. This
report argues that federal funding offers opportunities for states to recruit
and retain workers by providing childcare services, and lists three ways they
can do this.

Growing pains – the economic costs of a failing childcare system – Centre for
Progressive Policy (UK)

This report finds that a lack of affordable accessible childcare is costing the
economy billions, damaging the labour supply, and damaging women’s careers.

Nontraditional-Hour Child Care in Austin/Travis County: Key Findings and
Recommendations – Urban Institute (USA)

This policy brief lists findings from a study on non-traditional-hour childcare
services in Austin/Travis County, Texas. Findings show that the demand for such
services is substantial and outstrips supply, as nearly one in three children
with working parents in Austin/Travis County have parents working
non-traditional hours, with black and Hispanic Americans overrepresented among
these children.


DEFENCE & NATIONAL SECURITY

AUKUS Submarine Agreement: Historic but Not Yet Smooth Sailing – Center for
Strategic and International Studies (USA)

CSIS hails the joint announcement from San Diego of the AUKUS partnership a
‘seminal moment in the relationship between the United States, the United
Kingdom, and Australia’. However, it warns that, given the threat posed by China
and the People’s Liberation Army, it is likely the rest of the Australian
Defence Force (ADF) will need to be restructured to afford the AUKUS submarines
and meet the threat from Beijing.

Around the halls: AUKUS defines an emerging alliance at sea – Brookings
Institution (USA)

Following the announcement in mid-March 2023 that the trilateral AUKUS
partnership between the UK, the US and Australia will deliver conventionally
armed, nuclear-powered submarines to the Royal Australian Navy, Brookings
experts assess what AUKUS means for the US and its allies, China, Indo-Pacific
security and more.

Fragile unity: why Europeans are coming together on Ukraine (and what might
drive them apart) – European Council on Foreign Relations (Europe)

A recent multi-country poll for ECFR suggests that Europeans have come closer
together in their support for Ukraine. Europeans now agree that Russia is their
adversary or rival. Three factors have supported this remarkable coming
together: Ukrainian successes in the first year of the war; the way the war has
united the political left and right; and the perceived return of a strong West
led by the US. But these factors are fragile and European leaders should be
careful in their optimism. European policymakers should take advantage of this
unity to equip Ukraine, while doing everything they can to mitigate divisions
caused by changing circumstances at home and abroad.

Neurodiversity and National Security: How to Tackle National Security Challenges
with a Wider Range of Cognitive Talents – RAND Corporation (USA)

This report argues that neurodiversity, like other forms of diversity, enriches
any national security organisation, and calls upon employers to provide all
employees equally with accommodations which mitigate the effects of sensory
stimulation, alongside modifying job vacancies and hiring practices to attract
neurodivergent talent.

The AUKUS Submarine Deal Highlights a Tectonic Shift in the U.S.-Australia
Alliance – Carnegie Endowment for International Peace (USA)

Carnegie explores the implications of AUKUS and the sea change it represents for
the alliance between Washington and Canberra, as Australia works towards
becoming a crucial partner in supporting high-end US military operations to
preserve the balance of power in the Indo-Pacific region.

The U.S. Defense Industrial Base in an Era of Strategic Competition – Center for
Strategic and International Studies (USA)

Two members of the House Armed Services Committee, Congressmen Mike Waltz and
Jason Crow, join CSIS for a discussion on the scale and scope of challenges
within the US industrial base for deterrence and warfighting, in an era of
increasing geopolitical competition with countries such as China and Russia.

What is the future for global cooperation on democracy – Carnegie Europe
(Europe)

Published shortly before the second Summit for Democracy (S4D) led by US
President Joe Biden, this Carnegie Europe policy brief chronicles some of the
debates about the place of international democracy support in the new
geopolitical landscape, and in particular how democracies can cooperate on
security. This policy brief assesses the state of play in global democratic
cooperation and suggests how it might be best developed after this second
summit. The strategic need for security coordination amongst democracies remains
strong but its form must be rethought if it is to endure.


IMMIGRATION

Immigration after Brexit: where are we going? – UK in a Changing Europe (UK)

“This report explores what has happened to immigration, immigration policy and
public attitudes towards immigration since the Brexit vote. It examines the way
in which the UK government has reacted to the ending of free movement, and
explores the impact of new policies on immigration levels.”

The Fiscal Impact of Immigration in the United States – Cato Institute (USA)

Analysis by the Cato Institute indicates that the net fiscal impact of
immigrants to the US is more positive than that of native-born Americans, and
that immigrants have a positive net fiscal impact for the federal and
state/local governments. Immigrants who arrive in the US at age 25 and did not
complete high school have a net fiscal impact of +$216,000 in net present value
terms, compared to a corresponding net fiscal impact of -$32,000 among
native-born Americans who did not complete high school.

What would the Illegal Migration Bill mean in practice? – IPPR (UK)

This article makes the case the likely result of this legislation is a growing
number of people in the UK either destitute, in irregular work, or accommodated
by the state, or some combination of all three. Essentially, that it will fail
in its aim to stop boats and reduce illegal immigration.

Biden's Border Immigration Policy Is Still Reducing Border Crossings and Illegal
Immigration – Cato Institute (USA)

From December 2022 to February 2023, encounters of migrants crossing the
southwest border with Mexico have fallen 39%. Cato credits President Biden’s
border plan which has expanded legal migration to the US through humanitarian
parole, under which up to 30,000 migrants from Venezuela, Cuba, Nicaragua and
Haiti are allowed to enter the United States legally every month. This has
resulted in migrants from those countries waiting to enter legally rather than
attempting to cross illegally. This, the article argues, supports Cato’s theory
that legal migration options discourage illegal immigration.

Forced to move: How to reduce climate migration to the UK – Onward (UK)

This report asserts that, theoretically, global decarbonisation is the best way
to limit climate change and its consequences, including for migration. In
practice, however, some climate change is already locked in and global
decarbonisation cannot be achieved through UK national policy alone. It calls
the Government to develop a response to protect the integrity of the UK border
while also building resilience abroad in countries that are most vulnerable to
climate change.

Leveraging Lives: Serbia and Illegal Tunisian Migration to Europe – Carnegie
Middle East Center (Middle East)

Carnegie Middle East examines the increase in illegal migration from Tunisia
into the EU by way of Serbia between 2020 and 2022. Serbia provided a safer,
less monitored route into Western Europe than the Mediterranean Sea, smuggling
networks helped organise passage for many Tunisians from Serbia into Hungary,
and Belgrade turned a blind eye, using Tunisian migrants as leverage in its
ambition to obtain EU membership and only ending visa-free entry for Tunisian
nationals in November 2022. Carnegie recommends a ‘strategic horizon’ to
countries in its neighbourhood, based on ‘shared prosperity aimed at reducing
illegal migration’. Without such a common system, the EU will remain vulnerable
to pressure from non-countries on its border.


TECH, DIGITAL & AI

How California and other states are tackling AI legislation – Brookings
Institution (USA)

AI regulation in the United States is still in its infancy. However, a number of
states, including California, Connecticut, Illinois and Texas, are beginning to
tackle AI regulation, which raises questions about how these laws should be
designed and implemented.

Artificial intelligence adoption in the public sector: a case study – Bruegel
(Europe)

A working paper exploring the drivers and barriers to artificial intelligence
adoption by the public sector. The authors argue that several factors are
pivotal to ensure AI is adopted seamlessly: a fast discovery phase and subsidy
support mechanisms. The paper also concludes that successful human-centred roll
out of AI will depend, too, on availability of, and investment in,
“complementary intangible organisational capital”.


TRANSPORT

Ticket to save – how to make bus and train travel less taxing – Policy Exchange
(UK)

This report asserts that a tax relief at the basic rate be extended to season
tickets and passes, saving commuters who travel by bus and train hundreds of
pounds a year. This would match tax relief measures for buying bicycles or
low-emission cars already in place.

In reverse: The wrong way to fuel savings and falling transport emissions – The
Australia Institute (Australia)

Australia’s light duty vehicle fleet is among the least fuel efficient in the
world, using 24% more fuel per kilometre travelled than the UK. If the UK’s
modest standards could be met here, Australian drivers would save $13 billion a
year in fuel costs and overall transport emissions would be 17% lower.


ENERGY, NET ZERO & CLIMATE CHANGE

In the Wake of IRA: Grid Stability, Permitting Reform, and the Case for
Compromise – Center for Strategic and International Studies (USA)

The passage of the Inflation Reduction Act (IRA) will accelerate the US energy
transition and deliver a boost to the green power sector. Permitting reforms and
the construction of transmission infrastructure, however, are central to any
success. CSIS calls for a compromise over natural gas infrastructure which will
acknowledge its critical role in the energy system while still meeting
decarbonisation aspirations.

Europe needs both fiscal and energy solidarity – Centre for European Reform
(Europe)

This report argues that EU governments should curb energy subsidies and raise
support for clean energy investment. The EU should expand common borrowing to
fund green investment in order to accelerate the clean energy transition.

Managing the Health Risks of Climate Change – Council on Foreign Relations (USA)

“The health of millions stands to be harmed by climate change in the coming
decades, but national governments and international organizations remain
woefully underprepared. Elizabeth Willetts and Andy Haines suggest a path
forward to bolster responsiveness and resilience.”

How much will the EU pay Russia for fossil fuels over the next 12 months? –
Bruegel (Europe)

This article looks at how much the EU is paying Russia for fossil fuels and
projections on how much more they will pay in the coming year. Although
sanctions and a reduction in reliance on Russian energy have significantly
lowered the EU’s demand for Russian fossil fuels, this article shows that the EU
is far from independent of Russian gas and, indeed, will continue to pay around
€30 billion to Moscow over the coming year.

Accelerating the Demand for and International Trade in Low-Carbon Hydrogen –
KAPSARC (Saudi Arabia)

“Hydrogen is projected to play an important role in meeting decarbonization
targets. Hydrocarbon-rich countries perceive this as an opportunity to
decarbonize existing assets and monetize undeveloped hydrocarbon reserves.
Meanwhile, non-traditional energy exporters rich in renewable energy resources
view hydrogen as an opportunity to improve grid stability and a means to export
surplus electricity.”

Can hydrogen fuel reduce aviation’s climate impact? – Atlantic Council (USA)

The Atlantic Council explores liquid hydrogen as a promising, low-carbon
alternative to conventional jet fuel, and what must be done in the avian
industry before it can begin to transition to hydrogen. This includes designing
hydrogen-capable planes; expanding hydrogen-fuel infrastructure; and developing
additional hydrogen uses, such as long-haul trucking.

What’s Next for Oil and Gas Methane Regulations – Center for Strategic and
International Studies (USA)

“Cutting methane emissions from oil and gas production can help slow the pace of
global warming. This brief summarizes emerging U.S. regulations on methane
emissions, outlines the pathway for EU methane legislation, and analyzes
potential alignment.”

Economic implications of the climate provisions of the Inflation Reduction Act –
Brookings Institution (USA)

This paper’s authors seek to set out the economic implications of last year’s
Inflation Reduction Act. They estimate that, given the Act’s scope and its
ambition to transform the entire US energy sector, the cost of legislation could
be as much as $1tn, considerably higher than government estimates.


ESG

We can’t tackle climate change in the Middle East without ESG investing – Middle
East Institute

“Today’s ethical consumers are extremely worried about climate change,
especially after the deadly Covid-19 pandemic triggered an international energy
crisis and caused an overall energy price cap. As a consequence of the current
climate crisis, these consumers are reluctant to invest in companies associated
with fossil fuels. Consequently, some progressive firms have decided to sell
‘environment friendly’ products and focus on environmental, social, and
corporate governance (ESG). Yet, it is clear that embracing ESG is about more
than just including a note on the price tag saying the product is “100%
sustainable.” It is important to identify what ESG actually is and to explore
whether it is enough to combat the problem of corporate ‘greenwashing,’ when
companies exaggerate their green credentials for marketing purposes.”

Have we missed something interesting? Let us know by getting in touch
through info@sercoinstitute.com

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