Navigating Regulatory Arbitrage

"Remember, nuclear energy is not only green, it emits no carbon emissions, it also has virtually no variable costs and hence once built is extremely competitive. The major growth spurts in the world economy in the last two centuries can be clearly correlated with step changes in energy cost. Europe today finds itself unable to be competitive in steel, cement, plastics and ammonia (fertilizer) – the bedrock of a strong economy. The USA is the reverse."

"Whereas we have seen the carbon tax ‘stick’ in Europe, which has emphatically failed to work, we now have a ‘carrot’ in the USA called the Inflation Reduction Act. Almost half a trillion dollars of government grants and assistance are now in place to attract the world’s best green energies and technology to the USA. If you wish to invest in hydrogen, carbon capture, solar or wind, head west, young man."

"Early on we were predominantly European, with two thirds of our profits coming from this large, sophisticated market. Germany, Belgium, Norway and France led the way. We struggled with competitiveness in Italy and withdrew. The UK has been a disappointment. Skills are not what they were, energy is expensive, unions have been aggressive (unlike Germany, where the unions focus on encouraging employers to invest for future growth), although to be fair they have been much more constructive and willing to engage in proper discussions about the genuine health of our businesses over the last ten years, and the government has been uninterested or lacklustre at best. America has been resurgent on the back of world-beating energy costs and frankly fine management. Whereas Europe has slowly squeezed the life from much of its manufacturing base with carbon taxes, complex legislation, high labour and social costs, America has gone into overdrive."