Credit rating agencies now clearly recognise that climate change has become its own risk category, explains Tom Sanzillo at IEEFA who summarises his 43-page report. Financially, the coal, oil and gas sectors have served the world for decades. But due to regulatory, legal, economic, financial, political and social concerns, coal is credit negative and oil and gas is no longer positive. Sanzillo’s report charts the gradual erosion of the sector’s … [Read more...]
CBAM needs universal adoption of methods for measuring carbon intensity
Europe needs to account for the emissions of imported goods. That cannot happen without the international agreement on standards and certification systems for the carbon intensity of all steps in the value chain for all relevant products. Dolf Gielen and Francisco Boshell at IRENA and Massamba Thioye at the UNFCCC explain that several such systems exist around the world, but they need to be harmonised and widely adopted to truly reflect what is … [Read more...]
What can Oil producers learn from a sunset Coal industry?
Although fossil fuels are being replaced by clean energy they are not going away. Even coal is not in decline, it’s just peaked globally: declining in mature economies, still rising in developing ones. Henning Gloystein at the Eurasia Group, writing for the Atlantic Council, asks to what extent oil will follow coal. Oil consumption is still growing – 1% this year - though at a much slower rate than before. As with coal, a re-focus onto cleaner … [Read more...]