Economic Policies Impact

We are at a pivotal moment. 𝗧𝗵𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝗼𝗿𝗱𝗲𝗿 𝗶𝘀 𝘀𝗵𝗶𝗳𝘁𝗶𝗻𝗴—𝗳𝗮𝘀𝘁, 𝘂𝗻𝗽𝗿𝗲𝗱𝗶𝗰𝘁𝗮𝗯𝗹𝗲, 𝗮𝗻𝗱 𝗱𝗲𝗲𝗽𝗹𝘆 𝗶𝗺𝗽𝗮𝗰𝘁𝗳𝘂𝗹.   Nowhere is this more evident than in the Asia-Pacific, which accounts for ~40% of U.S. imports across key sectors. In my recent conversations with CEOs across the region, one thing is clear: amid the uncertainty, leaders are moving decisively and recalibrating. They are responding with quiet intensity and structural action.    In these times of change, CEOs must focus on the following: 𝟭. 𝗗𝗶𝘀𝗿𝘂𝗽𝘁𝗶𝗼𝗻 𝗶𝘀𝗻’𝘁 𝗰𝗼𝗻𝘁𝗿𝗼𝗹𝗹𝗮𝗯𝗹𝗲, 𝘁𝗵𝗲 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗲 𝗶𝘀 - Assess your product portfolio for tariff exposure. Key sectors such as steel, automotive, and electronics are already feeling the brunt of rising tariffs. Refine your pricing strategies and reconfigure supply chains to better navigate these impacts. 𝟮. 𝗧𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗯𝗲𝗹𝗼𝗻𝗴𝘀 𝘁𝗼 𝘁𝗵𝗼𝘀𝗲 𝘄𝗵𝗼 𝗮𝗻𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗲 𝗶𝘁 - Scenario-based planning is essential. Build flexible models that account for both direct and ripple effects of trade shifts—agility is your strategic edge. 𝟯. 𝗙𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝘀 𝘁𝗵𝗲 𝗸𝗲𝘆 𝘁𝗼 𝘀𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 - Shifting production and sourcing to regions with lower tariff exposure presents a unique opportunity to minimize cost impact and maintain competitive advantage. 𝟰. 𝗗𝗼𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗿𝗲𝘀𝗽𝗼𝗻𝗱—𝗹𝗲𝗮𝗱 - Set up a cross-functional team to track tariff developments and implement rapid responses. A proactive, collaborative approach turns disruption into opportunity, rather than simply weathering the storm.   In a world where change is constant, the ability to adapt quickly is not just an advantage—it’s a non-negotiable for sustained success.    Read more from our Global Advantage team on how we are helping businesses navigate this new reality with precision and foresight: https://lnkd.in/ert8gazK   #TradePolicy #AsiaPacific #Tariffs #GlobalEconomy #BCGInsights

How will the trade war affect the world’s sustainable energy transition? We just celebrated a major milestone in the green energy transition: Clean energy now generates over 40% of the world's electricity, as per a new report from think tank Ember. A decade ago, that figure was closer to 20%. Global trade has long been the engine behind the rise of renewable energy. From solar panels manufactured in China, to wind turbines built with components sourced across different continents, the clean energy revolution underway has been propelled by open markets and international cooperation. #Trade across countries has allowed countries to leverage our comparative advantages, lowering costs and allowing for the commercial scaling of these technologies. Solar power, of which more than 80% of panel production takes place in China, has become one of the most affordable sources of electricity. #Solar has doubled within just 3 years, contributing greatly to the goal of making net-zero energy accessible to all. Trade has not just supported this growth; it has enabled it. But just as the world begins to tip toward a #cleanenergy future, we’re starting to see momentum stall. Rising trade tensions and unprecedented global tariffs now pose a huge threat to the progress we have experienced in recent years. #Tariffs are set to increase costs of renewables, making it less affordable, particularly in developing countries and furthering the inequality that already exists in the green transition. These higher costs will slow down clean energy adoption across the world, delaying the path towards our global net-zero targets. Supply chain disruptions and further retaliatory tariff measures will continue to threaten sustainable energy adoption. While the current landscape offers ample opportunity for greater regional cooperation, diversifying supply chains take time and investment – which again means deceleration in #renewable adoption, at least in the short to medium term. But the urgency of the climate crisis waits for no one. We simply cannot afford to not have the U.S., the world’s largest economy and second-largest emitter, on board. #Climate change requires us to coordinate our efforts – and trade barriers are diverting our attention and resources away from collaborative solutions. Every delay puts us further off course towards a more #sustainable future, deepening the risks we all face, from rising climate disasters to energy insecurity. The road to a sustainable future is paved not just with technology and investment, but with trust, collaboration, and shared vision. Now, more than ever before, we need to build bridges and partnerships, rather than walls and tariffs. We cannot lose sight of the fact that #cooperation remains the cornerstone of meaningful progress for our green energy transition. ❓ Comment your thoughts below.  ⚡ Share this post to raise awareness.  💡 Follow Poman Lo for more insights.

How will Trade War impact climate change? As new trade tariffs are announced by President Trump, these will not only impact economic decisions for global trade, but also for climate action. Here are my initial assessment of how the trade war will impact climate action: 📉Economic Slowdown vs. Emissions: While short-term economic decline may lead to emissions reduction (as we saw during COVID-19), the long-term effects of tariff wars impact global efforts to combat climate change. The International Monetary Fund predicts a significant impact on global GDP as trade tensions escalate 📍Inefficiencies of Domestic Production: Tariffs results in more domestic production. However producing everything domestically could lead to inefficiencies, resulting in more emissions compared to importing goods manufactured in energy-efficient environments ⚡️Investment in Renewable Energy: Trade war threatens essential investments in renewable energy. As governments and businesses focus on immediate financial pressures, we may witness a slowdown in the transition to cleaner technologies. I expect pipeline projects to continue as expected while energy strategy implementations might get delayed. As recently highlighted by International Renewable Energy Agency (IRENA) Asia is expanding its renewable energy capacity significantly. This might be an opportunity to accelerate and further expand capacity in order to reduce external dependencies. 🌎 Global Cooperation and Innovation: History has shown us that free global trade can drive innovation and foster a cleaner energy transition. We might see short term slow down clean energy innovation as the impact of trade tariffs are assessed I strongly belive that the energy transition will continue as the world needs more energy than ever and demand raising. However I foresee a bumpy ride on the short term as the world asseses impacts of the trade tariffs #ClimateChange #GlobalTrade #RenewableEnergy #Sustainability #Innovation #Leadership #Collaboration #sustainability #esg #togetherforgreen #togetherforclimate #togetherforaction https://lnkd.in/dzuKYswK

Since the 5p plastic bag charge was introduced in 2015, the government tells us that single-use carrier bag use has dropped by 90% at major supermarkets with people now buying an average of just 2 bags per year, compared to 140 in 2014. Whilst the UK plastic bag ban dramatically reduced single-use carrier bag use it also led to a surge in "bags for life" that ironically has increased overall plastic use ~14,220 tonnes (estimated) of additional plastic per year…all directly attributable to the ban and the shift in consumer behaviour - a classic example of where a policy changed the format, but not the habit. Most shoppers don’t reuse “bags for life” enough. Research by Greenpeace and the Co-op found many people buy one on nearly every trip, treating them as semi-disposable. LDPE bags for life do not start being sustainable until you've used them at least four times - non‑woven PP bags need 11-14 uses - cotton tote bags require a staggering 131-173 uses to break even - https://lnkd.in/gEb9wHBh

Wake-Up Call for the Beverage & Packaged Drinking Water Industry (Effective April 1, 2025) From next year, all PET bottles used for packaged water, soft drinks, juices, and similar beverages must contain at least 30% recycled plastic (rPET). This will rise to 60% by 2030 This isn’t just a compliance issue—it’s a **strategic shift** that affects **every stakeholder**, not just large MNCs like #CocaCola or #PepsiCo #Bisleri #Aquafina #Kinley #TataWater #Bailey #RoyalChallengeWater #Haywards5000Water 🔍 Why It Matters: * India’s rPET capacity is currently limited, and demand will surge. * Packaging cost may rise 25–30%, impacting margins. * Smaller brands may face supply disadvantages unless they act now. * Consumers are watching, and social media won’t forgive greenwashing. 🎯 What Businesses Must Do ✅ Secure rPET supplier tie-ups in the next 6–12 months ✅ Recalculate unit economics for bottle costs ✅ Clearly label recycled content for customer trust ✅ Explore refill stations, reusable jars, or glass bottle models ✅ Join industry alliances for bulk sourcing or recycling programs This change is not a problem—it’s an opportunity. We can use this mandate to: ✔ Build more #sustainable and #resilient beverage brands ✔ Strengthen consumer trust ✔ Prepare for a future where transparency and traceability matter more than ever 💬 Whether you're running a local water bottling unit or managing a national beverage portfolio, this affects us all.

Energy Technology Perspectives 2024 - Key Takeaways The International Energy Agency (IEA) has released its Energy Technology Perspectives 2024 report. This comprehensive analysis provides crucial insights into the future of clean energy technologies, focusing on manufacturing, trade, and the path to Net Zero Emissions by 2050. Here are the key takeaways: 1️⃣ Clean energy technology manufacturing is poised for significant growth: Driven by falling costs and supportive policies, the production of technologies like solar PV, batteries, electric vehicles, electrolyzers, and heat pumps is expected to expand dramatically. 2️⃣ International trade flows of clean energy technologies and components are expected to intensify, facilitating cost-effective deployment and diversification of supply chains. 3️⃣ While China's existing manufacturing capacity offers a foundation for rapid scaling, diversification of supply chains is crucial for enhanced energy security and resilience. 4️⃣ Supportive policies, access to resources, and growing domestic demand can enable these economies to expand their manufacturing capabilities. 5️⃣ Continued research and development, coupled with targeted investments in manufacturing capacity, are critical to driving down costs and accelerating deployment. Challenges: ✴️ Concentrated supply chains: Over-reliance on a single country for manufacturing creates vulnerabilities to geopolitical tensions, trade disruptions, and resource constraints. ✴️ Consistent and coordinated government policies are essential to create a level playing field, incentivize investment, and foster innovation in clean energy manufacturing. ✴️ Access to critical minerals and other raw materials needed for clean energy technologies is a growing concern that needs to be addressed through diversification of supply and recycling initiatives. ✴️ Adequate infrastructure, including ports, transportation networks, and grid connections, is crucial for facilitating the growth of clean energy manufacturing and trade. Key Technologies: 🌟 The report highlights several key technologies crucial for the clean energy transition. These include solar photovoltaics (PV) for electricity generation, lithium-ion batteries for energy storage and electric vehicles, electrolyzers for green hydrogen production, and heat pumps for efficient heating and cooling. The manufacturing of these technologies, as well as their components and necessary raw materials like steel, aluminum, and various critical minerals, will require significant investment and innovation to meet the growing global demand. The ETP-2024 report underscores the need for urgent action to accelerate clean energy manufacturing and build resilient, diversified supply chains. #CleanEnergy #Manufacturing #Trade #IEA #NetZero #EnergyTechnologyPerspectives2024 #ClimateChange #Decarbonization #EnergyTransition

Trump's trade war could lead to more plastic pollution – and not just because of a reversal of a plastic straw ban. Falling oil prices means cheaper virgin plastic, which hurts demand for recycled plastic from brands. The price difference between virgin and recycled PET is $300-700 per tonne in Asia, which is deterring brand owners from buying from recyclers in the region. Brand owners such as The Coca-Cola Company and Unilever have already scaled back pledges to use more recycled plastic in their packaging in recent months to protect their margins as virgin plastic prices fall. Plastics are more likely to find their way into the environment if there is no market for collecting and recycling the material. While the price of recycled PET has been relatively stable, the market for recycled polypropylene (PP) and polyethylene (PE) is so low that waste pickers in Indonesia have stopped collecting the material, says Alvaro Aguilar I of Indonesia-based recycler Prevented Ocean Plastic. While a trade war could lead to lower virgin plastic prices, other macroeconomic and geopolitical factors could push prices in the opposite direction, says Rob Kaplan, CO of Circulate Capital, a Singapore-based circular economy investment firm. “We can expect monetary authorities to step in with expansionary policies to offset market disruptions, while ongoing instability in the Middle East, the war in Ukraine, and upcoming elections in key markets could have far greater effects on oil prices than tariffs alone,” says Kaplan. Regulations such as India’s minimum recycled content requirements, which come into effect this year, and polluter-pays schemes could also create price stability by mandating demand for recycled materials, even when virgin plastic prices fluctuate. Kaplan noted that the trade war may not only impact oil prices, but disrupt supply chains in ways that push brands towards recycled materials. “The US is a net importer of virgin PET, with Mexico and Canada supplying nearly 1/4 of the demand. If tariffs on these imports increase, virgin PET prices could rise, making recycled plastic a more attractive alternative.” This reinforces why investing in local and regional recycling solutions in Asia is key, he says. "If trade disruptions limit the flow of recycled content, we need strong infrastructure in place to collect, process, and remanufacture materials locally." For that to happen, governments need to set policies that help to drive the recycling market, and the private sector needs to commit to long-term investment in supply chains that “don’t collapse when virgin plastic prices drop.” #plastics #recycling #plasticpollution

Analyzing the Impact of the #Union #Budget 2024-25 announcements by Finance Minister Nirmala Sitharaman in the #Energy Sector. Here’s a detailed breakdown and potential implications: A. Solar Energy: PM Surya Ghar Yojana: Outlay: ₹75,021 crore. Objectives: 1. Power 10 million households. 2. Create 1.7 million direct jobs. 3. Add 30 GW of solar capacity. 4. Reduce 720 million tonnes of CO2 equivalent. Progress: 1. Over 1.28 crore registrations and 14 lakh applications. 2. Provision of free electricity up to 300 units for 1 crore households. Implications: Significant boost to the solar sector, job creation, and reduction in carbon emissions. B. Energy Storage: Pumped Storage Projects: Policy Introduction: To promote electricity storage and integrate renewable energy. Implications: Enhances grid stability and supports the growing renewable energy sector. C. Nuclear Energy: Strategic Development: Private Sector Partnership: 1. Setting up "Bharat Small Reactors". 2. R&D of "Bharat Small Modular Reactors". 3. R&D of new nuclear technologies. R&D Funding: ₹13,208 crore. Implications: Diversification of energy mix, increased nuclear energy contribution, and advancement in nuclear technology. D. Thermal Power: Advanced Ultra Super Critical (AUSC) Technology: Project Development: Joint venture between NTPC and BHEL for an 800 MW plant. Government Support: Fiscal assistance and development of indigenous high-grade steel and metallurgy. Implications: Higher efficiency in thermal power, domestic technological advancement, and economic benefits from advanced materials. E. Energy Efficiency: Hard-to-Abate Sectors: 1. Road Map Creation: Investment-grade energy audits in traditional micro and small industries. 2. Initial Phase: 60 clusters including brass and ceramic industries. 3. Next Phase: Expansion to another 100 clusters. Implications: Transition towards cleaner energy, improved energy efficiency in SMEs, and financial support for sustainable practices. F. Custom Duties: Critical Minerals: (a) Exemptions: Customs duties on 25 critical minerals. (b) Reductions: Basic Customs Duty (BCD) on two critical minerals. Implications: Boost to processing and refining, securing availability for strategic sectors like nuclear, renewable energy, and high-tech electronics. G. Solar Manufacturing: (a) Exemptions: Expanded list of exempted capital goods for solar cell and panel manufacturing. (b) Domestic Manufacturing: Withdrawal of exemptions for solar glass and tinned copper interconnect due to sufficient domestic capacity. Implications: Encouragement of domestic manufacturing capabilities and reduction of import dependency. Conclusion: The Budget 2024-25 introduces comprehensive measures across the energy sector, promoting sustainability, technological advancement, and energy efficiency. Strategic implementation and active participation from both public and private sectors will be crucial in realizing the full potential of these initiatives.

Here is a story of a plastic ban that increased emissions: In 2020, New Jersey (NJ) banned plastic and paper bags in all stores starting May 2022. Shockingly, this led to NJ's plastic consumption increasing three-fold after the ban. An assessment report found that the total number of plastic bags dropped by 60% as the ban had hoped for. But this initiative led the residents of the State to switch from thin plastic film bags to thicker, reusable bags. The issue was that these thicker bags were made of non-woven polypropylene, which takes a lot more plastic to make and isn't easily recyclable. All in all, these heavier bags led to the GHG emissions rising by 500%! Adding to this, there were also issues with how the consumers used the bags, instead of using it multiple times, they would only use it two or three times, resulting in these bags piling up at their homes or landfills.

Over the past year, I’ve had the pleasure of managing the Carnegie Endowment’s nonpartisan taskforce on US foreign policy for clean energy supply chains. Following monthly convenings with former + future policy makers and correlated analysis on innovation, trade, foreign policy, and supply chain mapping – our team’s findings have culminated into a flagship report: “How the U.S. Can Stop Losing the Race for Clean Energy” The report acknowledges that clean energy technologies are far from an American political priority, but argues that it is in the U.S.’s best long-term strategic interest to hedge on multiple technologies – especially those with dual-use applications, demand potency for critical minerals, and that can drive a durable, competitive edge in future low-carbon markets. Based on comprehensive data analysis, the report breaks down 15 technologies – solar, wind, batteries, permanent magnets, heat pumps, electrolyzers, nuclear, geothermal, CCUS, DAC, SAF, as well as clean steel, aluminum, ammonia, and ships – and gauges their domestic industrial base, supply chain resilience, innovation opportunity, and potential market size. Each technology is assigned a strategy via onshoring, friendshoring, or leapfrogging to the next-generation system. We conclude with four priority macro-recommendations for present and future U.S. policy makers: 🚀 Focus on an “Innovation First” industrial policy that drives next-gen opportunities, using foreign policy to stimulate export markets and advance joint R&D 🌐Broaden the focus of the Partnership for Global Infrastructure and Investment with clear supply chain targets, an improved domestic policy process, and integrated foreign policy tools 🤝Create a domestic interagency process to generate a project pipeline for building out overseas supply chains 💵 Bolster the International Development Finance Corporation, the Export-Import Bank, and other agencies as proper tools of industrial policy abroad Grateful for the Carnegie Endowment for International Peace for this opportunity and the stellar team for their great work: Bentley Allan Noah J. Gordon Dan Helmeci Jonas Goldman Daevan Mangalmurti Debbra Goh Leonardo Martinez-Diaz https://lnkd.in/edtuFcWh