Global net zero policy backlash

PARAGRAPH 1: The global net zero policy narrative is facing a backlash following the IPCC's ruling that the high emissions scenario RCP8.5 is implausible. In Europe, the Green Deal is unraveling due to rising energy prices and economic slowdown. In the U.S., Republicans are pushing back against climate lawsuits, and Massachusetts Democrats are advancing a bill to limit car mileage, both under the guise of reducing emissions.

PARAGRAPH 2: The energy sector is most affected, with companies facing potential regulatory hurdles and shifting demand. European utilities like Enel and E.ON may struggle with the Green Deal's unpopularity, while U.S. energy producers like ExxonMobil and Chevron could benefit from reduced litigation risks. Auto manufacturers like General Motors and Ford may also be impacted by potential mileage restrictions.

PARAGRAPH 3: Next, watch for the EU's response to the Green Deal's unpopularity, likely in the form of revised policies or targets by Q2 2023. Also, track U.S. climate-related litigation trends following the Republican pushback, with key cases expected to conclude by late 2023. Lastly, monitor Massachusetts' bill progress, with a potential vote in the state legislature by mid-2023.