Draghi's Europe revival moonshot hinges on cleantech

Plus, the stock market's debate preview is all about inflation.

In today’s edition:

— Mario Draghi’s cleantech goals for Europe unveiled. Build a tech sector. Decarbonize it.

— The stock market votes for tonight’s debate winner

— Google throws the dice on carbon removal at $100 a ton

— How climate change is hitting your local real estate market

— A growing new climate threat: air quality

— The new Death Valley? Californians trading cost savings for extreme heat

From the IEA: As energy transitions advance, "cents per kilowatt hour" may replace "dollars per barrel" as the benchmark for energy affordability. On a path to 1.5°C, oil’s share in total household energy spending falls significantly by 2035, while electricity’s share surges.

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Mario Draghi needs little introduction on the world’s finance stage. The Italian banker who guided Europe through its crippling debt crisis a decade ago and then went on to become prime minister of Italy has always been one of the leading financial minds in the region.

So when Draghi put his name to a controversial report this week on how to rebuild a competitive economic bloc from the ruins of the Russian energy crisis, markets paid attention. Central to his goals were spending 800 billion euros ($882 billion) to create an innovative tech industry and decarbonizing it in a way that is heavy on innovation and light on regulation.

The report lists clean energy as one of three major pillars to build a new European economy around, but without the over-regulation the EU has become known for. Allowing cleantech entrepreneurs to commercialize without heavy regulation and to show countries how that energy is saving them money is essential to stopping the threat from China, and consistent energy inflation that plagues the region, the report argues.

Part of the report builds on some of the work President Joe Biden has done on his Inflation Reduction Act to stimulate investment in clean energy through tax subsidies and manufacturing benefits. But most of it came in the form of a call for more transparency in the energy markets so investors and governments can clearly see that the economy can grow even as energy prices fall.

Like most of these reports, the Draghi plan will be exposed to months of scrutiny and likely derision from cost-sensitive bureaucrats. Where the money would come from is anybody’s guess. But coming from someone who literally had to step up and guarantee the value of the euro at the height of the crisis a decade ago, the blueprint is an ambitious guide to overcoming an age-old problem.

Don’t forget to contact me directly if you have suggestions or ideas dcallaway@callawayclimateinsights.com.

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Tuesday’s subscriber insights

Stock market vote on Tuesday’s debate is all about inflation