S&P Global Report provides an outlook for the coming year; macroeconomic factors remain a burden.
Energy companies and mining groups will face a whole range of challenges in 2024, according to a new industry outlook on the energy transition by information service provider S&P Global. The focus of investments in the mining industry is currently on critical minerals, the energy transition, and decarbonization, i.e., the avoidance of greenhouse gases. However, the economic conditions in the coming year could lead to companies shying away from further investments. The relatively weak metal prices are compounded by high inflation and high interest rates. In the medium term, however, the outlook for the sector remains positive. Meanwhile, energy companies are struggling with complex approval procedures and a shortage of skilled workers.
Meanwhile, S&P Global warns against too much government intervention, which could ultimately jeopardize the success of the energy and transport transition. The investigation into the subsidization of the Chinese e-car industry is cited as one example. EU Commission President Ursula von der Leyen said that “the global markets are being flooded with cheaper Chinese electric cars,” made possible by financial support from Beijing. As a result of the investigation, the import of e-cars could be reduced, and the prices for these vehicles could generally rise, according to S&P, a hurdle for the acceptance of the technology. In addition, this could also threaten the goal of gradually phasing out vehicles with combustion engines.