Extreme weather events are becoming more frequent due to climate change. At the same time, global decarbonisation is changing the economics of the energy sector. Yet credit ratings agencies aren’t consistently factoring in the risk of climate-related change into borrowing costs, explains Matt Burke at the University of Oxford. For example, oil and gas firms are facing virtually no additional borrowing costs. It’s a similar story for governments … [Read more...]
Credit Rating Agencies: a guide to pricing in long-term climate risks
Nobody wants share, stock and bond prices to fall off a cliff unexpectedly. But while Credit Rating Agencies (CRAs) continue to evaluate based on short-term policy changes and market forces without specifically accounting for climate risks, that’s what could happen. IEEFA have published their guides to how CRAs can adapt – without throwing out – their existing models to integrate environmental, social and governance (ESG) credit risks. Hazel … [Read more...]
European green steel makers are securing funding – and big customers – for production plants
European steel makers are leading the way in building the first green steel production plants. The big step forward is the securing of finance from a range of private and public banks and credit guarantors, says Soroush Basirat at IEEFA. Swedish start-up H2 Green Steel and industry leaders Thyssenkrupp and Salzgitter are now set to spend billions, while pre-sales to and commitments from BMW, Miele, Mercedes and Ford are helping to create the … [Read more...]