COP28 may make up for COP27’s shortcomings 17 Nov 2022 The global climate meeting has mostly failed to lure the same corporate big hitters as Glasgow did last year. In this Viewsroom podcast, Breakingviews columnists discuss how even if the gathering in Egypt’s Sharm El-Sheikh yields little progress, 2023 in the UAE could be better.
Don’t dump on U.S. coal plan. Make it better! 11 Nov 2022 Sceptics fear an American plan to use voluntary carbon markets to accelerate the energy transition in poor countries, unveiled at COP27, could amount to greenwashing. But done properly, it could help developing markets close down coal plants, a major source of pollution.
Guest view: Climate finance club hands over baton 8 Nov 2022 It’s a year since banks, investors and insurers with a collective $130 trln convened in the Glasgow Financial Alliance for Net Zero. Despite some setbacks, the group has made progress, writes Huw van Steenis. Now it’s up to governments to help unlock more green investments.
How Joe Biden can help save the planet at COP27 7 Nov 2022 “Just transition partnerships” with states like India are essential to fight climate change and advance Western interests. America needs to join up its trade, geopolitical and climate policies, says Hugo Dixon, as the U.S. president heads to the U.N. climate conference in Egypt.
Climate fight’s main event battles sophomore slump 1 Nov 2022 COP26 put climate change centre stage in 2021, but this year war and energy crises have distracted attention. In this episode of The Exchange, the United Nations’ key COP27 players Mahmoud Mohieldin and Nigel Topping tell George Hay why the event could still make a splash.
Brazil gives flagging climate fight a timely boost 31 Oct 2022 Luiz Inácio Lula da Silva beat Jair Bolsonaro in the Latin American state’s presidential election. He could curb deforestation that makes the country a big greenhouse gas emitter. It’s a bright spot in a year when public and private sector momentum on climate change has slowed.
UK unveils overdue sieve for ESG alphabet soup 25 Oct 2022 Britain’s Financial Conduct Authority has sketched out rules classifying environmental, social and governance funds. The approach differs from Europe’s framework, adding to fund managers’ burden. Yet it may also be tougher and more consumer friendly, making greenwashing harder.
Toyota’s new, new EV plan suggests smarter driving 25 Oct 2022 The $218 bln Japanese automaker is mulling its third electric-vehicle reboot in 13 months as rival Tesla leaves it in the dust. Frequent rejigs can mean bigwigs are flailing for ideas. But Toyota’s latest overhaul implies boss Akio Toyoda is addressing missteps with more speed.
Aussie budget could do with a spot of dam-busting 24 Oct 2022 Rising inflation and expectations of lower growth put Treasurer Jim Chalmers in a tight spot as he prepares his first comprehensive fiscal policy. Cancelling up to $4.7 bln worth of the previous government’s plans for unnecessary water infrastructure would relieve some pressure.
Aussies put net-zero nationalisation on the map 21 Oct 2022 The leader of Victoria says the state will take a controlling stake in new green power projects if he’s re-elected. That might crowd out capital. But done right, public ownership can spread financial risks and align policy with investors – just what the private sector wants.
Sovereign debt greens yet net-zero pledges darken 13 Oct 2022 Saudi Arabia’s wealth fund is the latest public body to issue securities to fund renewable assets. Strong buyer demand and the chance to flaunt action on climate change explain the boom. Yet national decarbonisation targets remain weak, and green bonds do little to improve them.
Green hydrogen revolution risks dying of thirst 5 Oct 2022 Backers make three miscalculations about the gas’ key input, water: that they won’t need much, that it’s cheap, and that desalination is a breeze. Some $700 bln is needed for projects from Australia to Saudi to Europe, but water scarcity means many will be left high and dry.
ESG debate comes down to returns, stupid 29 Sep 2022 Bosses are speaking out on sustainability issues. Yet BlackRock’s socially conscious chief Larry Fink and anti-woke activist Vivek Ramaswamy agree on one thing: stock price performance. And customers may ultimately be hard to sway, so CEOs are better off biting their tongues.
Capital Calls: EasyJet, Nexi 27 Sep 2022 Concise views on global finance: The budget airline scraps its offset plan and focuses efforts on cleaner technology; the 12 bln euro payment company’s valuation gap with peer Worldline looks increasingly hard to justify.
Alan Jope exit is easiest step of Unilever revival 26 Sep 2022 Shares in the $111 bln Dove maker rose after it said its CEO would leave by end-2023. A botched bid for GSK’s personal health arm hit Jope’s credibility. But even with a new broom Unilever will struggle to pull off a big deal, and selling lower-growth units looks harder to do.
Server landlords have plenty more rents to extract 16 Sep 2022 Short-seller Jim Chanos says data centers are overvalued, but buyout shops keep chasing firms like London-based Global Switch with bids over 30 times EBITDA. Tech giants are a threat. But as long as demand outpaces supply and cheap financing is available, the party can roll on.
Patagonia lobs ESG breakup calls back to the wild 16 Sep 2022 Founder Yvon Chouinard has ceded control of the clothing firm to use its earnings to fight climate risk. A sale would have built a bigger war chest. But he wants to defend his company’s values and workers, too. It shows how splitting environmental and social goals is wrongheaded.
Oil price cap will harm, not help, Asia 15 Sep 2022 The U.S. says countries ignoring a G7-led price cap against Russia can leverage it to negotiate discounts. But even if the policy works and lowers short-term prices, India and China’s massive long-term oil needs make it risky to mess with price signals that spur fresh supply.
Capital Calls: Oil vs. ESG 13 Sep 2022 Concise views on global finance: The price of a barrel of Brent crude has fallen 30% since mid-summer, and over 10% in two weeks. If it stays below $100 a barrel, oil companies will start to become worse investments. That could help solve backlash to ESG investing.
Pension funds are going too long on U.S. politics 1 Sep 2022 A new Texas investment blacklist that includes BlackRock is more symbolic than a real threat. But the anti-ESG push by states is putting pressure on retirement outfits as they grapple with falling markets. Politicians’ short-term whims are a bad match for long-term funds.