HSBC Australian chief economist Paul Bloxham echoed Reserve Bank of Australia governor Philip Lowe’s warning this week of higher and more volatile energy prices ahead.
The global economy is being hit by a commodities “super-squeeze” rather than a “super cycle” as underinvestment in traditional fossil energy sources conspires to drive prices higher.
“Of course, this, in turn, helps to motivate a shift to renewables, which supports demand for the green commodities, including copper, lithium, cobalt and hydrogen,” he said. Mr Bloxham added that geopolitically, large energy producers may have increased market power, including future large renewable producers.Speaking at a rare earths summit on Friday, Treasurer Jim Chalmers warned of nations “becoming hostage to geopolitical competition, conflict, or circumstance”.
Reserve Bank of Australia governor Philip Lowe this week warned the renewable energy transition, along with reverse globalisation, fewer working age people, and more extreme climate shocksAnd on the global transition to renewables, he indicated the significant investment in renewable energy around the world was not being met by investment in existing energy sources that were “depreciating quickly”.
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