Why the Paris Agreement poses major stranded asset risk to Indonesian palm oil

GreenBiz

Research lays bare scale of stranded asset risk facing Indonesia's palm oil sector if Paris Agreement climate goals are met

Governments should compensate investors for stranded assets, says IISD

Environmental Finance

Governments should compensate oil and gas investors for stranded assets to avoid costly tribunals, the International Institute for Sustainable Development (IISD) has said

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“Makes no sense:” Push for new gas pipelines could create $A675bn of stranded assets

Renew Economy

The post “Makes no sense:” Push for new gas pipelines could create $A675bn of stranded assets appeared first on RenewEconomy. A US$500 billion global rush to build new gas pipelines - including Australia's "gas fired recovery" - undermines efforts to achieve zero net goals.

The growing concern over stranded assets

GreenBiz

As with so many climate-related topics, the hypothetical is rapidly turning into the hypercritical

Who really owns the oil industry’s future stranded assets? If you own investment funds or expect a pension, it might be you

Environmental News Bits

Even if the new well is a success, future government policies designed to slow climate change could make the project unprofitable or force it to shut down years … Continue reading Who really owns the oil industry’s future stranded assets?

A trillion reasons to transition off fossil fuels

Corporate Knights

Private investors in rich countries stand to lose more than a trillion dollars on stranded fossil fuel assets as climate policies slash their value, giving them a powerful interest in the transition off carbon, according to new research published in the journal Nature Climate Change.

The last straw: Will plastic become the next stranded asset?

MSCI

Could plastic become the next stranded asset Oil and gas companies are accelerating investment in plastics, in response to the shift away from fossil fuels. But is this pivot sustainable?

Indonesian palm oil faces risk of stranded assets due to climate action

Eco-Business

Two thirds of unplanted concessions in Indonesia could be stranded assets by 2040, due to efforts to reduce the sector's impact on forests. But companies that grow sustainably could win big, a new study predicts

Adapt to Survive: Why Oil Companies Must Plan for Net Zero and Avoid Stranded Assets

Environmental News Bits

Download the document. Carbon Tracker’s fifth annual analysis of the risk of investing in oil and gas producers – warns investors that companies have not woken up to the “seismic implications” of the International Energy Agency’s finding that no investment in new oil and gas production is needed if the world aims to limit global… Read more → Climate change Oil and gas industry Publications

The Brief: Assets off the sidelines (video), Erie’s opportunity zones, Netflix banks Black, carbon tax on meat, Big Energy’s stranded assets

Impact Alpha

20: Investors share experiences in getting their assets off the sidelines (video). The post The Brief: Assets off the sidelines (video), Erie’s opportunity zones, Netflix banks Black, carbon tax on meat, Big Energy’s stranded assets appeared first on ImpactAlpha.

LNG in the Philippines: Are investors risking US$14 billion in stranded assets?

Eco-Business

The country's only domestic source of liquified natural gas is expected to run dry this decade sparking a boom in import terminal projects. But regulatory uncertainty and financial risks could turn them into bad investments

The Brief: Hourly employee ownership, seeding vertical farms, eco-packaging, e-motorcycles in Brazil, tropical forests funds, stranded-asset write-downs

Impact Alpha

Greetings, Agents of Impact! The Call: Systemic impact investing. Tomorrow’s subscriber-only Call brings together the too-often separate conversations around systemic racism and systemic risk.

The Brief: Building community wealth, alt-home-financing, curbing construction carbon, employee financial health, BP’s stranded assets

Impact Alpha

The post The Brief: Building community wealth, alt-home-financing, curbing construction carbon, employee financial health, BP’s stranded assets appeared first on ImpactAlpha. Greetings, Agents of Impact, including our many new subscribers! RSVP for The Call No.

Gas asset risk detailed

Green Career News

Experts warn that Australia is locking in its fossil fuel dependency, and could be left with billions of dollars in stranded assets. News Articles

South Korea's largest electric utility Kepco to offload coal and gas assets after US$12 billion loss

Eco-Business

Energy analysts say it is unclear who will buy the soon-to-be stranded assets from the utility firm Korea Electric Power Corporation suffered from an unprecended deficit in the first half of the year due to high coal and gas prices.

'Blue hydrogen would drive up natural-gas demand and bills, adding to EU's energy woes'

Energy Central

Blue hydrogen woes Producing H2 from methane 'does not make sense' during a gas price crisis, and projects may end up as stranded assets within the decade, says IEEFA study.

Stranded in a Vicious Cycle? The Case for Transformation in Animal Agriculture

Environmental News Bits

Research commissioned by the Changing Markets Foundation surveying 201 respondents from the investment community shows that 82% agreed that climate change presents a material risk to meat and dairy industry-related investments and 84% believe that a lack of mitigation of climate change could lead to stranded assets in this industry. Investors also … Continue reading Stranded in a Vicious Cycle? Download the document.

The Brief: Keeping fossil fuels in the ground, climate tech pipeline, microfinance exit in Honduras, Indigenous-led waste recycling, impact-linked compensation

Impact Alpha

Featured: Stranded Assets A new kind of carbon credit incentivizes fossil fuel producers to ‘keep it in the ground.’. Greetings, Agents of Impact!

Christine Lagarde: Climate change and central banks – analysing, advising and acting

Environmental News Bits

Physical risks, stranded assets and greater firm default risk expose… Read more → Climate change FinanceRead the full speech at BIS. Both climate change and the transition to a carbon neutral economy pose substantial challenges for the economy and the financial system, with the potential to affect growth and inflation in the short term, but also over much longer horizons.

China Stress Tests Find Default Risks in High-emitting Sectors

Chris Hall

Stranded assets, defaults in thermal power, steel and cement sectors may increase if companies do not shift to low-carbon alternatives. The People’s Bank of China (PBOC) has revealed the results of its first phase of climate risk stress tests of major banks in the country.

Advocates urge regulation of banks’ climate commitments to avoid greenwashing

Corporate Knights

The banks ’ climate plans need to be mandatory, subject to enforcement and fully aligned with climate science including a planned phaseout of high-emitting assets, said Andrews. .

Agent of Impact: Mark Campanale, Carbon Tracker Initiative

Impact Alpha

6 – The risk that fossil fuel investments will become ‘stranded assets’ went from fringe thesis to mainstream preoccupation in what must be near-record time. ImpactAlpha, Dec.

Canadian LNG deal with Germany seems unlikely, as emphasis grows on hydrogen

Corporate Knights

Building a new LNG export facility in Canada sounds like an enormous stranded asset in the making.”.

The biggest carbon losers

Corporate Knights

About two-thirds of the GHG reductions achieved by these companies were genuine from the planet’s perspective; much of it came courtesy of efficiency measures or retiring polluting assets. To boot, Enel managed to deflate its carbon bubble almost exclusively by retiring high-carbon assets.

Stranded Workers a Risk in Unjust Transition

Chris Hall

LSE GRI’s new just transition guidance follows a report published last year which called on asset owners to enhance their scrutiny of social aspects in investee companies’ net zero strategies, signalling their expectations through manager selection and engagement policies.

GFANZ to Direct Private Finance to Support NDCs – Carney

Chris Hall

Ex-BoE chief calls for “radical new approach” to mobilising investment in emerging and developed markets; also warns of stranded assets. They total over US$130 trillion in assets, around 40% of private investments globally.

Water Risks a “Substantive” Threat to Corporate Value

Chris Hall

Financial institutions urged to mitigate risks posed by water-stranding events to portfolios and loan books. Already, assets are being stranded throughout the coal, electric utilities, metals and mining, and oil and gas sectors, the report noted.

CDP 52

Renewables and energy efficiency – priorities for 2030 emissions reductions

Smart Energy International

trillion annually away from fossil fuels to avoid stranded assets. IRENA’s new World Energy Transition Outlook 2022 sets out 2030 priorities to meet its 1.5 o C pathway to 2050.

Listed Equities’ Carbon Well Exceeds Paris Target

Chris Hall

The report warns that fossil fuel demand will peak as government policies to cut emissions, asset owners’ net-zero commitments and the rapid growth of clean energy technologies combine to transition the economy towards renewables. This could lead to vast amounts of stranded assets if oil, gas and coal companies continue with business as usual. . Stock exchanges’ listing rules putting investors at risk, new report finds. .

AB: China's State-Owned Enterprises Hold Keys to Carbon Neutral

3BL Media

Case Study: Stranded Assets and the Economics of a Chinese Power Plant. These differences can be more sharply examined by analyzing the economics of a Chinese power plant and stranded-assets risk.

Turn Commitments into “Hard Numbers”, says GFANZ’s Carney

Chris Hall

Financial institutions need to segment their portfolios into transition, net zero-aligned and stranded assets and develop clear emissions reduction plans in line with recognised 2030 and 2050 targets, said Mark Carney, Founder and Co-chair of the Glasgow Financial Alliance for Net Zero (GFANZ).

Investors Still in the Dark on Climate Risks to Firms’ Finances

Chris Hall

For example, they may request assurance that the company won’t end up with stranded assets.”. Audit firms must do “a better job” or risk penalties, warns Carbon Tracker.

With 1.5°C as the limit, COP27 outcome must signal the end of fossil fuels

We Mean Business Coalition

From an economic perspective, fossil fuels represent future indebtedness and stranded assets. With negotiators wrangling over the final wording of what is agreed at COP27 the world continues to grapple with multiple crises – in particular the costs of energy. .

Growing Market for Properties with a Purpose

Chris Hall

Investment consultancy bfinance last year surveyed more than 250 asset owners worldwide representing more than US$7 trillion in assets. The report added: “As such, shifts in policy can hugely affect the value of assets.”.

Is someone you know changing the world? Nominate them for the constellation prize

Renewable Energy World

The focus of our argument beyond reduction of GHG emissions was that the installation of natural-gas-fed electric power generators would be a “stranded asset.” Stranded assets are unable to earn their original economic return due to changes in the landscape in which the assets operate.

Litigation Surge Reflects Evolving Climate Duties

Chris Hall

Directors urged to integrate climate risks and opportunities into their governance roles.

COP27: Get finance flowing in the right direction so business can cut emissions faster

We Mean Business Coalition

Will a company’s investment take it a step closer towards a net zero world, or will it be a stranded asset tomorrow? So far, COP27 has been dominated by conversations about finance , and loss and damage.

Winners and losers in green energy’s ‘Age of Inflation’

Envirotec Magazine

European renewable energy asset holders and investors must rapidly re-evaluate their strategies and business models, faced with inflationary and supply chain pressures, alongside ongoing regulatory uncertainty driven by the energy crisis.

ESG Narratives Needed as well as Numbers

Chris Hall

Research predicts new demands on asset managers, as clients’ sustainable investment priorities mature. Behaviours and actions grouped under ‘tell us how you do it’ were reported by 85% of asset managers, while almost all (98%) noted ‘appetite for new data’ among clients.

New Singapore Guidance for FIs on Environmental Risks

Chris Hall

The Monetary Authority of Singapore (MAS) has published new information papers on environmental risk management for banks , insurers and asset managers. Asia-Pacific News Regulation ASSET MANAGERS BANKS ENVIRONMENTAL INSURANCE FIRMS MAS REGULATION RISK MANAGEMENT

ICYMI, Governments and Regulators are Making the Running

Chris Hall

Perhaps these outcomes should not be a surprise after BlackRock, the world’s largest asset manager, described many 2022 climate resolutions as “ prescriptive or constraining ”. The private sector’s ability to accelerate the pace of net zero transition is open to question.

Energy Giants Come Under Shareholder Pressure on Emissions

Chris Hall

A group of 11 investors, including Dutch asset manager MN, Aegon Asset Management, Greater Manchester Pension Fund and Van Lanschot Kempen, have filed a shareholder resolution urging TotalEnergies to set emissions reduction targets consistent with the Paris Climate Agreement.

European Companies Under Fire Following Limited Climate Risk Reporting

Chris Hall

trillion in assets are challenging corporate audit committee chairs on their continued omission of climate risks in financial reporting ahead of the 2022 annual general meeting (AGM) season. .