Carbonomics: Updated cost curve shows diverging trends between power and transport

In this report, Goldman Sachs Research analysts update their Carbonomics de-carbonization cost curve and arrive at five key conclusions: 1) low cost de-carbonization becomes more expensive driven mostly by cost inflation and higher interest rates; 2) the high end of the cost curve benefits from a material improvement in battery costs for transport; 3) the impact of higher interest rates on the overall cost curve is limited; 4) the Inflation Reduction Act remains supportive with $500 bn of project announcements and; 5)  Bio-energy continues to gain momentum in some of the harder-to-abate sectors such as transport and buildings.