*WATCH* — 3 Ways We Changed Our Minds Over the Past Year

Research evidence excerpt

*WATCH* — 3 Ways We Changed Our Minds Over the Past Year

rs on security grounds). With

China Shock 2.0 now firmly in the narrative, fear of rapid market-share displacement across EU

industrial supply chains is high on policymakers' minds.

Aniket Shah, PhD * | Head of Sust. &

Implications: Transition goals are now subordinated to industrial resilience. This likely implies Transition Strategy

higher costs and slower deployment timelines for Europe's green agenda. Investors should focus on (212) 323-3976 | ashah14@jefferies.com

protected domestic champions, especially ahead of policy announcements Luke Sussams ^ | Sust. & Transition Strategist

44 (0)20 7548 4404 | lsussams@jefferies.com

3) Energy efficiency, the preferred policy response to energy crises — Our prior assumption Charles Boakye, CFA * | Sust. & Transition

that an energy shock would trigger renewables acceleration has proven incomplete. Following the Strategist

Hormuz-related energy price shock, we expected a rapid rollout of new renewable energy policies in (212) 336-6649 | cboakye@jefferies.com

countries around the world reliant on fossil fuels. This happened to some extent during the previous Yujin Kim * | Sust. & Transition Strategy

energy price shock (i.e. Russian invasion of Ukraine leading to REPowerEU, within 3 months). Associate

However, over 3 months into the current crisis, governments have prioritised low-cost demand- +1 (212) 778-8314 | ykim4@jefferies.com

side measures instead (i.e. energy efficiency). Using the IEA's Energy Crisis Policy Response Jacqueline Murdock ^ | Sust. & Transition

Tracker, we note >50 energy efficiency measures and only ~15 structural renewable energy Strategy Associate

+44 (0)20 7548 4165 | jmurdock@jefferies.com

policy measures (out of a total of 90).